I think you just need to look at the PS5 Pro as proof that more GPU power doesn’t translate linearly to better picture quality.
The PS5 Pro has a 67% beefier GPU than the standard PS5 - with a price to match - yet can anyone say the end result is 67% better? Is it even 10% better?
We’ve been hitting diminishing returns on raw rasterising for years now, a different approach is definitely needed.
Ray tracing actually will directly change the way games are made. A lot of time is spent by artists placing light sources and baking light maps to realistically light scenery - with ray tracing, you get that realism “for free”.
DF did a really interesting video on the purely path traced version of Metro: Exodus and as part of that, the artists talked about how much easier and faster it was to build that version.