I remember when I got a Dreamcast and thinking that they'd reached a technological peak... like, what is there that you couldn't do with this beast of a console? Pushing more polygons doesn't make for a better game.
Though I think the real answer comes more from memory, processor cores, and overall transfer speeds... not to push more triangles or to ray trace, but to simulate more elements of the world... physics, people, weather, etc. Not all games use the hardware for such things, but I think it really benefits large, open-world games like RDR2 and Horizon: Zero Dawn. I don't think those would have been possible on PS3 without serious cutbacks to the point of ruining the game. Hell, Cyberpunk barely even runs on the PS4 as it is.
I don't have a PS5 or Series X, so I can't say much about those... Maybe we finally have reached that tech peak that I thought the Dreamcast brought about... but the primary advantage seems to be the huge increase in loading speed, to the point where you can load huge amounts of assets on the fly without missing a beat. Maybe that's enough?