Mickey: What does "optimization" really mean in terms of console hardware and games?

From what I know so far, some settings in console versions like shadows, resolution, antialiasing are turned down. On the algorithm side, smarter features like Dynamic resolution scaling, SMAA / TXAA, are what come to mind when trying to hit 60 fps on consoles.
I don't see how developers could extract any more performance out of hardware besides these kinds of methods (reducing costly effects and more efficient algorithms)
Am I missing anything?

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