More capable than current gen consoles is going to be local AI. Calling it now. It won't be as much about graphics as it is about selling some notion of human like NPCs and smarter enemies and some other use case they can sell to the masses.
Any competitive business will accept this risk if it gives them any type of edge no matter the duration of that edge. This is no different that using an exotic raw material.
Because Japanese hand tools are objectively less efficient than power tools in a carpentry shop. The guys that want to use hand tools can go work in a boutique that charges a premium for that level of craftsmanship. If you told them to use power tools, no amount of utility would convince them to use them, with most of their justification being psychological. Also, "It is difficult to get a man to understand something, when his salary depends on his not understanding it."
There are plenty of projects that are green lit that have good intent but are bone headed when it comes to solution and implementation. Good engineers hate these types of projects. Good PMs try to avoid these at all costs but sometimes your hand gets forced because some VIP, either internal or external volun-tells you to do it.