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NWN2 was not on consoles.
Sure, but that's not the point. Next-gen is short-hand for the level of detail in the art assets.
No, no it's not. Next-gen is short-hand for next generation, and refers to the generation of the platform. It has nothing to do with "dramatic change in the way video games "look"." It explicitly has to do with the generation of the platform it is released on. So, unless you're claiming that Neverwinter Nights 2 was released as a DX10, Vista, Xbox 360, PS3, or Wii game, which is wasn't, then you're still just throwing around a buzzword with no clue as to what it means.