I still think the problem is in a lack of games more than the systems but the systems also hold back some of the games.
I feel like it's cyclical. It's hard to sell systems if there aren't enough games , meanwhile because there's a lack of games, there are less systems sold, thus less incentive to develop new games. Rinse and repeat. And theoretically, it shouldn't be so much of a problem since consoles are closer now to PCs than ever, so they should be holding things back less than they have in the past. I do think the defining difference this generation as compared to others are the amount of remasters, and for many, I feel that's a hard sell. When that's the majority of games available for the PS5 Pro, it just doesn't look good from a showcase standpoint. The lack of any real value really kicks in at this point.
And then you have the fact that this generation had a slow start due to the supply shortage, which surely didn't help things. In fact, I think that directly led developers to release games that weren't intended for last-gen, and I think as you point out, the whole Cyberpunk 2077 fiasco is a good example of this. They had to release it on something to make money even if it meant a broken game, as the new generation wasn't yet available for most people.
Which then, I think led us into what we're seeing today with the many remasters, which would have been easier to work on at a time when the expectations were for fewer consoles, thus less of a push towards brand new games and IPs.
It's been an interesting generation, in that many things have happened that haven't in previous generations. It's supposedly the halfway point of the console's life, yet it feels like it barely has even gotten started, and I've seen a video from DF where they wonder if perhaps this console generation should be extended for this reason, but of course one of them points out that from a hardware standpoint, that's more difficult. I personally think there's still lots of room to push it and squeeze more out of it.