I sure Crytek is being modest in their assertion that the PC is a generation ahead. In fact, it is more likely to be 2 to 3 generations ahead where the GPU is concerned. CPU wise, perhaps, it is more likely a generation in this case, as Intel and AMD (up until now) have been happy to just shrink dies, add more cores, and lower TDPs, but we will start seeing some interesting stuff in GPU and GPGPU integration soon.
The consoles do benefit in regard to developers being able to harness the hardware, where the PC is bogged down with the combination of parts and large OSs with background processes running wild.
Nevertheless, I strongly believe that the console market is stalling developer innovation to at least some degree. Also, possibly slowing the rate by which GPU manufacturers feel pressured to advance the technology further and rather focus on growing markets like GPGPU and content creation segments. Don?t get me wrong, they are pressured by their own competition with each other, but the dedication to gaming is less justified where publishes are pushing console titles further and PC ports are closer to (a yes planned, but nevertheless,) an after thought.
I'm no analyst, but I do believe that such stalling of hardware development could affect the development and cost of console generations to come. Developers need to recognize that the PC market is (at least presently) still the tug boat for future console technology.
The mass market of consoles might be content with only minor improvement since there will be few technologies (with examples) to bolster their might over them. Otherwise, greater advancements will have to hit the consumer in the pocketbooks.
Finally, IMHO, backward compatibility will become very important in the next generation, as the investment in games has very much increased. MS and Sony will not want to undo or segment the inroads made into the living room as well rounded entertainment computing devices. Thus, increments on the technology would be more business friendly, something that gave Nintendo a head start. However, the big players will be mindful to be competitive and have their new products with selling points.