Where should the industry go?
Maybe focus more on developing good games that are more than just good graphics. A shit game will still be a shit game at 4k and 120fps. A good game doesn't necessarily need all that to be good. Game developers seem to have lost sight of doing more with less.
The industry has corrupted the mindset of their consumer base with this capitalist driven myth that you need to buy more stuff to be happy. The kids out there trolling about shit graphics and the PCMRs complaining about the lower console specs are gobbling it up. Now that one company is seeing diminishing returns, they're considering pulling back on that growth mantra. Maybe they'll start encouraging game development that doesn't waste so many computing resources for schlocky derivative lazy content. I'm sure they'll find some other way to convince us that in order to keep gaming, we'll need to keep buying.
Whataboutism isn't a very convincing argument.