I think it depends on genre.
If you take your average shooter and are pretty clear on the goal, you'll most likely appease your audience. There are always going to be those people that don't understand technical limitations and think military shooters should be as epic as real war, and that every gun in the world should be in the game, but if you look at the success of Call of Duty, or Battlefield, or even Rainbow Six, they keep people happy. And to the people complaining about these games, go right ahead. Like it or not, these games are expanding and adding more features with each new installement. Battlefield may have lost the 64 player count with Bad Company 2, but increased it with graphics, bullet physics, sound design, and of course destruction. Considering it looks like they're keeping this and bringing back other staples from the series into Battlefield 3, expectations are high, and they should be. Call of Duty might be a rehash every year, but they're adding game mods and customization features and expanding on what makes their audience happy.
But then look at RPGs. Compare Baldur's Gate to Dragon Age, Morrowind to Oblivion, or Fallout 2 to New Vegas. There's simply more to do in older titles. Of course new titles demand a lot out of developers. Motion capture takes longer than designing a sprite, you have to record voice work instead of just writing walls of text the player will read, and of course all that jazz with perspective and lighting effects. I get all this, and that games can be tougher to make these days because there's more that has to be done. At the same time, I want to use spears in an Elder Scrolls game again damn it! It makes sense that the games have to sacrifice certain things in order to improve other areas, but when it does that the sequel (or spiritual successor) should continue improving instead of downgrading. Not to kick 'em when they're down here, but look at Dragon Age 2 and how much was simply removed from the first game. So of course, expectations waver. Example: Part of me wants Skyrim to be awesome and bring back what I loved about Morrowind. High expectations. Then I read that they've once again removed skills and abilities, so my expectations are low again
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