That's not the point. The whole point was that studios won't be able to utilize the full potential of next gen systems in the first 12-24 months.
Thats true. But its even more true, because of assets creation and algorithms. Better GPGPU used will push hardware to 93-95% utilization, but what will really push next-gen games is technology of engines and assets creation
I'm not really talking about crappy IQ as 1080p + SMAA in deferred renderer, but something lower

1080p + SMAA T2x is quite decent. I really hope that in future titles frame-interpolation and real-time AA techniques and resolution changes will be the norm.
Like by default game renders in 1.3x of 1080p with SMAA 4x,
when frame time starting to increase, it lowers to 1080p SMAA 4x,
then to 1080 SMAA T2x,
then in very demanding scenes with a lot of particles and motion it would decrease to 0.7x of 1080p + SMAA T2x, but because You have high quality dof and motion blur effects its not as visible.
And as performance demand decreases IQ goes up.
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I think BF4 is using baked GI too. I was just saying it may come in some form in higher end visual games towards the end of the gen. Getting all the lighting real time first is a much bigger priority and makes a big difference in itself.
They had technology for real-time GI in BF 3 already, they just didnt need to use it. But they are pushing destructibility more in BF 4 and i think in SP You have lighting condition changing in real-time, so i think they actually are using it.
I actually think that Frostbite 3 uses Geometrics dynamic GI by default.
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SVOGI has other problems than just performance. There are great issues with bleeding of colors through geometry.
A good example of this would be that if I am in a room that has a wall towards a room with for example a strong red light. In that case, the red GI in that room would bleed through the wall into the floor of my room. Currently, there is no way of preventing this except increasing the resolution or increase the thickness of the walls. The first one causes a huge performance hit, and also goes against the principle of SVOGI LOD (which is that further away from the camera you have lower resolution SVOGI calculations), the other is contextual and not a complete solution.
This is a bit off topic, but I just wanted to point out that those awesome SVOGI demos you've seen isn't the whole story.
Didnt know about that. Still, I think, its solvable problem in the long run and real-time high quality GI from every light source is worth
BTW that technique that Nvidia's CloudLight is using looks really good and also support many lights to cast ambient light.