When i think of good visuals i think 3 things.
1) Good graphics. The technical stuff. Textures, resolution, things like that. This has to be decent. It doesn't have to be amazing, just OK.
2) Good visual design. The environment has to be made with style and direction. It doesn't have to be realistic, it just has to look cool.
3) Animations. This is a major part of what makes a game immersive for me and something i think a lot of games miss. It doesn't matter how cool your graphics are, if your characters move like rusted robots or they look like they float when they run it'll look bad.
The visuals are important in a game. They make it more believable, and you can interact with other characters better if they seem more human in their movements and facial expressions, but you shouldn't go overboard with it. Costs too much money and time.
Chalk me up to yes, but to an extent.