Originally Posted by Madpistol
From a raw geometry/effects stand point, you're right. However, there is one crucial rendering property of DX11 that you're forgetting about:
The hardware adds the geometry based on an algorithm. It does not require extra bandwidth to achive, just cleverly coded surface textures.
If AMD were to put an enormously powerful tessellation engine in their next console, we could potentially see Avatar-like graphics. It really is a possibility with DX11.
Edit: By no, I mean, the first Toy Story featured typically 80-100 million polygons a frame, and we are a far cry from even that right now. Avatar is like 10 times that. So, no.