So i guess my question is will it be possible to have 100's of fluid moving characters onscreen on the upcoming systems?
Believe it or not, that might not happen with the next generation. If you look at the way many developers are choosing to spend their polygon and fill rate budget (the level of complexity you see in the characters and environments) in current PC games, we might still be stuck with the same size spaces with the same number of characters, just with higher fidelity and more complex lighting. Look at Doom3, in which the largets space is about the size of a high school gymnasium and you rarely see more than 4-5 creatures on screen at once.
I agree that hundreds of characters would be nice to have, but the industry currently has a big hard-on for cramming stupid (no, really, I personally feel it's stupid) amounts of detail into the same number of characters. Which is kind of a waste, because that's not really using technology to enable anything new gameplay-wise. There was a noticeable step up in scope and complexity from PS1 to PS2, but it may not happen this time around.
I do think there will still be games like Dynasty Warriors that are about massive battles, but then, those are possible with the current generation.
Long story short, I personally am hoping the next hardware generation is a total bust sales-wise, where consumers aren't sufficiently compelled to upgrade because the graphics improvements are so incremental. Development budgets and team sizes are going to go through the roof, and only the most wealthy companies will be left standing. Yet sales won't rise commensurately. At which point I believe the industry will collapse, because if all that's on the shelves is

ing EA rehash shit, even people with abominably low standards will eventually stop buying. Then game design might start to become less about the technology and more about the creativity. We might even see the emergence of new markets and an "indie" aesthetic.
Well, that's what I *hope* will happen at least. This is based on my own experience as a game developer and caring / thinking way too much about the industry.