Just this morning I was organizing some files when I ran across a picture from 2007. What the heck was I thinking? The hair was mis-adjusted, the skin was horrible, and I wore neko ears with my human ears exposed. At least the eyes were of good quality.
Compared with a picture from just yesterday, the older picture is even more ... well, you can see for yourself. Of course, since then I've spent thousands of $Lindens on new skins, hair, and clothing. What really helps, though, is that lighting has vastly improved. Windlight along with the ability to blur backgrounds and to adjust picture quality could probably make even some of the worst pictures better.
Who knows what another 6/10ths of a decade will bring? Maybe full mesh bodies that don't show texture stretching flaws. Perhaps Windlight that lets water and air behave as if it was in different climates. Even higher photo resolutions? Probably as graphics improve and memory costs plummet.
Second Life is poised to either whither or bloom at this time, if you read some of the "news" blogs. From what I've seen of the past, the future is pretty bright and I look forward to it.