That second one I think you have to take in context of general appearance.
Like, this is what iPhone games look like now:
http://www.abload.de/img/mass-effect-infiltratuio37.jpg
http://www.abload.de/img/mass-effect-infiltratzqr9e.jpg
Now, this hardware is significantly worse than the Xbox 360, but I think many people would say this looks like an Xbox 360 game.
You can also just use general multiplication for his point.
If you increased 9x a year, and the Xbox 720 was 9x more powerful than the Xbox 360, as soon as you hit the "360's level", in two years you would be nine times as powerful as the Xbox 720.
I don't think anyone is expecting an 81x jump for the Xbox 360 -> Xbox 720 though.
This would also be a good time for us to note that they probably can't keep 9x a year jumps up.