You do realize that real games, are 10-20 gigs? Some are even larger.
What qualifies PS3 games as "real" and iPad games as "not real"? A game is a game, if you get enjoyment out of it, then it has accomplished its purpose. Angry Birds is as much a game as Call of Duty, though they are quite different. Lest you say that length is a qualifier, remember that Baldur's Gate is available for iPad, and has got to be one of the longest, if not THE longest, games available for iPad.
Reality is the Ipad gets watered down clones, and thats the truth.
The truth is that there are games I play on my iPad that I would never consider playing on my PS3 and vice-versa.
Another fact is these consoles are 6-7 years old, and they still kill the ipad.
Yes, that is a fact. Congratulations, you can state a fact. It has no relevance whatsoever. My PS3 is 6 years old or so, and my MacBook Pro is 3 years old. My MBP is literally over 4x as powerful as the PS3 in all aspects, yet the PS3 kills my MBP in terms of gaming performance. The PS3 is a dedicated gaming machine, whose hardware has remained unchanged for 6 years. Developers have been making games for that hardware and are eeking every last drop of power out of it as efficiently as possible. None of this is true of the iPad. So, which would logically put out better graphics?
The way computer hardware is made, it is literally a matter of physics, that the ipad will never have the same capabilities as a console or computer.
I'd say even the first iPad is better than, say, a Nintendo 64. I think you mean that it won't have the capabilities of a current generation console, and that will be true.
Not to mention the horrible controls of the touch screen.
There are plenty of games that beautifully illustrate just how elegant touchscreen controls can be. Clearly, you've never played any of them.
And the people who dream of an apple tv combined with ipads as controllers are funny to, that would be like 2,200 for a terrible experience.
That would actually be the one thing that would drive me to an Apple TV right now. The device looks pretty awesome, but I don't have a use for it.
To reply to the original question, I think it's feasible that the iPad 5 could deliver graphics that at least initially look as good as current generation consoles, but that's honestly a stretch. For example, Real Racing 2 HD looks awesome, even on my TV. But when I load up Gran Turismo 5, the graphics of Real Racing 2 are suddenly put to shame. Granted, Real Racing 3 is probably coming out soon (speculation on my part!), but even some of the more impressive games, like Infinity Blade II, still fall short of something like Skyrim or Uncharted 3.
Will the iPad eventually surpass the PS3? Sure, there's no doubt of that. But it won't ever be keeping up with current generation consoles or computers. There's not enough space, and it's not what the iPad is made to do.
As to consoles dying, I think that will be determined by the next generation of consoles. Sony and Microsoft will have to come up with some really neat stuff, or I think this next generation will be their last. Nintendo has already played its hand in the Wii U, and from what I understand it's not going spectacularly. I love my PS3 because not only is it a great gaming console, it's pretty darn good as a media center. It's still a gaming system first (in terms of how it works), though. I think I use it for equal parts Netflix and games, as well as Blu-Ray. It's certainly the center of my media system. The PS4 and the XBox 720 will need to be so much more if they want to succeed. I think they'll both need to be Intel-based, which will ease cost of development, and integrate more with existing technologies and mobile devices. Just my 2¢...