I don't really give a damn about setting. Everything fine, except for steampunk(too silly), WWII(plz, leave it alone for a while) and anti-terrorism(FFS).
What makes a good FPS by Xombie:
-Fun gunplay, since its all you do in fps, a little bit tactical is better. Easy deaths, no 40-bullets to kill dudes. But not too ARMA.
-Ballistics, ricochet, real clips(when you wont reload after each shot).
-Destruction Everything from making holes in walls(with bullets or RPG) to exploding whole buildings is fun. Not that it should be only good thing about whole game (like in Red Faction Guerilla)
-Various enemies, levels. Yes, FEAR2 sucked on many levels, but more than one enemy skin would help a little. FEAR1 was full of same warehouse and his clones with same shelves with same hammer on it. Copy-paste FTW.
-No ragdoll or PhysX Just NO. I don't want to see that shitty slow-floating indestructable corpses in various humorous poses. Either make something GTA4-like or gtfo(use animation - just not too slow and dramatic, in other words not like in CoD).
-Good AI. No super-accuracy from mile away or complete imbeciles who knows no better than getting stuck in passageways and ignore enemy.
-Bots for multiplayer is a must, too bad nobody ever makes them nowdays. I dont like going online before trying game with bots, and sometimes i don't want to play with people at all(especially with 9-year olds spamming in voicechat about immaturity and other childish problems), add lag, add various punkbuster shit etc.
-Performance. Loading times, slowdowns, missing textures, shaders 4.0, lots of bloom, awful screen filters(CoD6)... well pretty much everything that makes you think twice before clicking the shortcut.
No nobody needs a graphic breakthrough, CoD4 had outdated graphics and was popular. CoD6 uses same damn graphics and even worse.
And nobody actually wants to make decent 25234x58985 textures. Dragon Age has detailed faces and lots of very lowres equipment.
So why bother with Unreal Engine 10 if your models/textures is right from Quake2?