I think it's good to raise the 'standard' and harness increases in processing/graphics power and not to be fearful of putting content creation beyond the one person hobbyiest. I don't think this will happen. Proof for me is that for the same time spent creating a BVE route I get MUCH better results in MSTS because of better editing tools.
The need for object & route building tools to remain accessible to the average punter will not be overlooked. The longer term interest in rail sims seems to be more on content creation than driving.
I agree that the average 'single person' hobbiest will face more hours to develop models to the new standard - from scratch - it took over a month for a graphics 'gun' to create the HST model.
But keep in mind that current models/routes will likely be importable as a start point.
I also firmly believe route building will be better. Free digital terrain and sat imagery is now available for the whole planet. KRS will support DEM out of the box, a big leap on MSTS. Most of my time spent in RE was on track laying and trying to line up static objects by trial and error. And saving/backing up/recovering from corrupted databases. So if these processes are faster/easier then productivity/quality must go up. And if LOD generation is built into the graphics engine then the tedious process of creating LODs goes away saving more time.
The same goes for activity creation etc. Easier or automated tools must speed things.
Importantly, unlike MSTS, Kuju will retain IP of the product. So after version 1 is out then KRS (and third parties) can expand features & create more content.
From a previous interview with Kuju:
So the current UK/Euro focus (bias...as we approach completion (of version 1) will start talking about ideas for further versions - but there are some obvious targets for us :- more routes covering the rest of the world, integration of some functionality actively using the fact that a significant proportion of users will have broadband...
Something else to look forward to - in Newsletter 9 Kuju have promised several announcements and looks at the route editing tools for this month (May)