I think the lull maybe longer than normal this time ; Reason being is we are on the verge of leaving DX9 for DX10 and I am guesing the pc gamming arena will now be focusing on that DX10 game movement.Just a guess though.
I doubt it, the game industry doesn't usually jump on the "newest gfx bandwagon", some games for dx10 will come out in 2007 sure, but ALL will be hybrid dx9/10 games and the dx10 portion will be made AFTER then dx9 portion is completed, this is because the game industry isnt stupid, most games lik 99.9999999999999999999999% of them wont/dont have dx10 hardware and arent going to rush out and buy vista and an overpriced dx10 card.
the avrage gamers is still using a 9550 or 9600 level card, playing at 800x600 and thinking its fine(till they see the game on a true gamers pc and MUST HAVE a new more powerfull card!!!!)
In my opinion, the gaming industry as a whole runs in cycles. I think we are slowly headed back to a cycle where smaller game companys will publish their own stuff and stop using the huge publishing houses to do so, mainly because those HUGE publishers like VUG and ATARI(infgramers) push games out early before the dev team/company has had time to finnish them, this costs the dev team and company that made the game in both time and respect from players, also it costs$$$ because the company has to try and patch the game up to where it should have been when launched.
im excited about games like crysis,fable2,ut2k7 and the like but im not gonna go all crazy waiting, IMHO I have some very good games to keep playing till the new ones come out
then again i retro game as well as times so i guess some of you may think im a little crazy, cant help it , some of the older games i have are still fun, still worth playing, sure the gfx arent amazing anymore, but the game itselfs well made, unlike many of todays games where you deal with beta enterface, beta gfx support and companys who never do finnish them because they already got ur $$$