Both video game graphics and violence have been increasing at a steady pace in the last fiew years. Worse so then when i was 12 and the snes JUST came out...
Games are being created to appeal to adults more then children rather then the way it used to be.
They'll improve, without a doubt. We haven't even begun to scratch the surface of what games can look like. Before too long it'll be hard to distinguish computer graphics from real life (that's my guess, atleast).