I can't remember thinking exactly like that with ingame visuals. Maybe when I witnessed pre rendered cutscenes on PS1, especially in later games like Final Fantasy 8 and 9, Resident Evil 3 etc. I thought and dreamed games might look that good in the far future, many console generations later.
These days, I think there is always huge room for improvements. There are hundreds, if not thousands of different technical aspects in video games. I think even the best looking games, like The Order, Naughty Dog games of this generation, Horizon etc. will look somewhat dated in the future. It might take a longer time than with other, visually less impressive games, but still. Look At the visually best games of PS3. Yes, they still look fantastic, especially in their Remastered PS4 versions, but take a look at the visual difference between the first Last of Us and Uncharted 4, or Last Of US 2. It's a massive jump, and the first Last Of Us game looks noticeable less impressive, next to the PS4 graphic kings. Hardware gets better, tools are getting advanced, new and creative techniques are getting developed by smart developers etc. If you have a little knowledge about how things do work, and a little bit of imagination, you will realize that the possibilities are almost endless.