I had the same opinion, but it changed after playing Doom (2016, Xbox One) and Doom Eternal (2020, Xbox Series X) back to back. The difference was dramatic.
I still believe we are reaching a point where Moore's law is hitting a fundamental limit, but only time will tell how things will pan out. My guess is that consoles will need to get bigger to get better.
If we had sustainable practices, at least of 3rd of the people in the United States and Western Europe would have a standard of living similar to the people in 3rd world country. This is assuming we don't compensate for things by exploiting more vulnerable populations.
I personally think this is a decent trade-off, but the people my country would end up exploiting would probably disagree.