I'd have to partly agree about the wii.
We don't need technically excellent graphics, so long as they are artistically good.
Now I know there are armies of WOW haters out there, but I'd say a big part of the games appeal is that it has nice varied looks, without needing some epic PC to play it, its very scalable, and yet looks beautiful, not because of thousands of polygons, but because the art direction and the artists themselves have made the most of the limitations they had to work within.
There's a place for super realism, in the case of sports games, Gran Turismo, etc.
However we can't afford to get too obsessed with it.