First, I look for fun gameplay. You can do that with 8-bit graphics, or even monochrome.
Once the fun gameplay is rock solid, good graphics certainly look nice.
If good graphics are the focus or somehow detract from the game's length or performance, or increase the games cost and overall burden of production, then one needs to worry. If eye catching graphics and physics engines come first and foremost as a necessary step to impress teams of investors who know nothing of gameplay, we got problems.
Is it fair to say World of Warcraft is the most successful game of the decade? Has it consumed more hours of human life than any other paid title? If so, its graphics were, at best, just okay at release, and over its lifespan have gotten somewhat better but are still way behind the times. If mediocre graphics has the advantage of a larger world and better performance, it was a wise trade off, and mostly made up for by excellent art direction.
I have a hand-built gaming rig (and damn straight I hand built it to get the best graphical performance out of games) and a PS3, and mostly right now I'm playing games on the Playstation Portable, and half of those are remakes of earlier PS/PS2 games, and I'm having the most fun with gaming I've had in years.