Agreed OP. I'd like to also link to another of Shamus' articles that explains this issue:
http://www.escapistmagazine.com/articles/view/columns/experienced-points/6069-Death-to-Good-Graphics
Good graphics aren't bad, but there needs to be some actual substance to back them up, otherwise they're boring games that no one will want to buy. Or can buy since your graphics requirements are so damn high.
I've been playing quite a bit of last-gen games, and Planescape Torment. They all look fine, and Torment has environments that are easily far more beautiful than anything on the market right now.
Timesplitters looks great and runs well, and I'm sure if the games were re-released on the PC damn near everyone could run them, and run them well and experience the greatest games ever made(seriously, I would pay any amount of money for a new Timesplitters game, re-release or otherwise).
Point is. Just stop improving graphics, keep them as they are right now. Over time more people will be able to catch up, the devs will learn how to use the tech better, making development cheaper and faster, and also allow them to do much more with other areas of the game, like gameplay. And more people would be able to buy and play them, which means more profit.
Whenever I talk to people and ask them if their a PC gamer, they all say "my PC can't handle it". They never say "no, it looks lame, I don't want to get into it" or "no, my consoles fine for me right now"(ok, a few do say those things, but very few). People seem to want to be PC gamers, its just this giant fucking graphics barrier blocks them off from it.