This is a fun idea.
I had this moment late because I didn't get in to console gaming until late 1999 in to early 2000. This was a weird time to start gaming. It was the final years of the N64 and PlayStation after many people had already been wowed by the likes of Super Mario 64 and Metal Gear Solid. Arcades, once famous for showcasing the best graphics of the industry, were out of fashion and being rapidly converted to ticket-based.
I also bounced around between the Nintendo 64, the Super Nintendo, and the GameCube because they were all equally new to me. Because I was playing all three of these systems at once, I had no real sense of how much time had passed between the landmark releases on each machine. Super Mario World and Super Mario 64 were just two different Mario games. I didn't think of them in regards to the technology it took to make them or how much time passed from one to the other.
But finally I had a moment that made me think "wow, games have come so far, this is the best it will ever be." It was when I saw the seam on Mario's hat in the opening cutscene to Super Smash Bros Melee. I remember being amazed that games could show that level of detail now. No longer did they simply represent the world - they depicted it as it was! What a time to be alive.
I didn't have a thought like this again until I played The Last of Us on PS3. I didn't really think "games will never look better than this," but more like "I would be okay if games looked like this forever." This feeling was, rather humorously, erased when I played The Last of Us Remastered on PS4 and realized how much better that game could look just running on a newer machine.
I don't think I've had such a thought since then. I actually have begun to take graphics sort of for granted now. I've played a lot of amazing-looking games this generation and I am definitely consistently wowed at the visual fidelity of their universes. I think this is reflected in the widespread popularity of photo modes in so many games now. Games just look amazing and there is so much they can show and present and design that they couldn't before.
I doubt I will ever feel like "games will never look better than this" again. But it's amazing to always be able to say "games have never looked better."