The only fly in the ointment is what kind of HDMI chipset will be included in the console itself? You could add a BDXL drive if need be (if it is just a regular BD drive), but if the HDMI chipset won't handle the output when the specs are finalized... Either they'll have to come out with a PS4 "slim"
with UHD media capabilities or they'll have to dumb down UHD home video to meet outdated HDMI specs.
We'll see if the PS4 is locked down before or after the industry-wide UHD specs are ironed out.
That's why I really detest the whole HDMI "thing." It should have been open-source (with an encrypted signal to satisfy those Hollywood lawyers) fire-wire or something similar with an upgradable firmware chipset.
As for rendered game graphics... clueless or not (thanks T2k), I have read up a bit on photo-realistic facial and motion-captured CGI graphics and animation for movies (like Avatar and Weta's Gollum) and Sony would still need one heck of a powerful CPU/GPU to render an entire
interactive, multi-player game with spatial audio surround cues with the level of Hollywood-grade, human-like detail and movement shown in this demo here:
Currently, short animated clips like this (but a full scene, not just one head) could be rendered on the PC platform running multiple Intel Xeon enterprise multi-core/multi-thread processors and the very latest GPU engines, but you'd still need more RAM and more hard drive space (a lot more) than the PS4 has included. Weta, PIXAR, ILM, etc. use workstations not just one, basic computer for something as elaborate as what gamers wish for.
Car games are another matter... the shapes and surfaces are more basic than human skin and muscle with wrinkles, subtle plays of light and translucency, somewhat random muscle movement, the effects of gravity on said movement, etc. etc. You're trying to trick the human senses into believing a synthetic, animated object is a living, breathing being. Pretty tough to do. An inanimate object is much easier.
Will this happen someday? Sure! Moore's Law. Just not right now.
While I did watch a live stream, they did cut away to the actual video being fed into the projectors. It gave you some idea of the texturing in the various demos.