Lots more "yes" in this thread than I anticipated. I was expecting more knee-jerk "go play your ps2 noob"-type stuff.
Have to agree myself, most of the games that blew me away the past couple years were not underwear-spoilers in the graphics department, they all had a clever idea, and they grabbed me by the throat with it. Bastion and FTL come to mind, I'm sure there's something awesome I'm forgetting, but... sleepy... ugh.
I'm glad the gamers of escapist are on board, but should we let the upper echelons of the gaming press know? They might be out of the loop. It drives me nuts to read a review where a game gets tea-bagged not for having bad graphics, but just for focusing on other aspects of the game. You know, all those little things you spend 90% of the game dealing with after you get over how great the water looks.
Of course, even if gamers voiced this opinion en masse, they would call us a "vocal minority" and ignore us. Less refined gamers (lol) DEMAND better graphics, or failing that, they want graphics that cost alot more because then they can convince themselves that they are better. And even forgetting the gamers, hardware and software companies WANT more demand for there fancy doodads and engines, and lets face it, as far as the masses are concerned, this new generation is just as big an improvement as the last one.
There's always gonna be room for improvement, but it does seem like there is a hell of a lot less room this generation. Of course, I didn't hook up my 360 to an HDTV until 2 years ago, so I feel like I'm still living in the last generation. Get off my lawn. I'm gonna go watch a let's play of a text game.