Should Next Gen Focus On Graphics, Or Physics And Gameplay?

Imagine for one second that you're playing a FPS multiplayer game with similar visuals to Killzone 3, or sightly better, but this time around the environment is not so dead and scripted. Where if you find yourself in a room and C4 detonates, there's a big chance that this room might come crumbling down. Imagine being able to interact with nearly everything you see on that map , from vehicles to trees and animals. A game where you every building is accessible, and if a door is lock then you break the lock, and electric poles can be brought down and entire entire map can experience a black out leaving whoever didn't bother to equip night vision goggles, to sorely regret their choices. A game where each map follows a 24 hour day/night cycle and changing weather cycles, making them even more unpredictable, and actually causing your character to react to those conditions in either a positive or negative way. I know that games like Battlefield have done some of the things on a much smaller scales,such as destructible environment, but I really think that should be the focus of next gen games.