I don't think they should be the selling point, IE: Crysis. I'm fine with a games looks for the most part, I still consider CS:S' graphics to be "Good". As long as I can make out what an object/person is from a reasonable distance then the graphics are fine, I shouldn't have to walk up to a character and be 3 feet away before I decide to blow its brains out or ask it how its day was.
I think it's the same with physics today, Crysis has this lovely physics engine where plant leaves move, breezes, water etc but I never thought "That's completely unrealistic" about HL2, and that's not a particularly recent game. nVidia push PhysX like it's going to change the world and it just wont, as long as things break and fall down then I can't see much of a problem.
Graphics are all well and good, I liked Crysis' graphics, I liked HL2's graphics, I even liked the graphics on Fifa10, for what little you can see of things. I want graphics to continue to improve, but not to the point where the game is delayed 3 years because the main character looks like a pile of spanners.