Even if you run something on max settings and high resolution, it still doesn't mean it'll look as good as next-gen games. All your PC games have been running on last-gen engines. Developers don't push out next-gen engines until next-gen consoles come out because of cost/benefits.
Like I said in my first post here, next-gen consoles will dramatically increase PC graphics at the same time because developers are putting resources into developing next-gen engines.
Nope. Cryengine 3 is a next gen engine that Crytek will be using for its next-gen games. It had to be majorly downgraded for the 360/PS3 versions of Crysis 3. Also, even if recent PC games have been running on "last-gen engines", those engines were often modified on PC to support next-gen effects. Bokeh depth of field, horizon based ambient occlusion, tessellation, etc. And of course texture detail level isn't really dependent on just what engine you're using.
There sort of was a problem, though, in that often the next-gen effects were tacked on top of the "last-gen engine", rather than being built from the ground up to support it. This could be felt in games like Dragon Age II or Batman: Arkham City, despite support from AMD or Nvidia in getting those features running. This led to sometimes limited implementations and often poorly optimized performance. It wasn't the case, though, with games like Battlefield 3 or Crysis 3, as the PC was given much priority for them.
Next gen consoles will push PC graphics up across the board, as all developers will be targeting a higher level of detail rather than a few select developers that care about the PC enough. And be designed for it from the ground up will help performance. But let's not pretend that a console with less than 35% of the theoretical performance of a single Radeon HD 7970 GHz edition will provide anything radically better than what has already been done to push said 7970 GHz Edition to its limits.