Graphics are very important, but only for what they add to gameplay and atmosphere. For example, Okami would not have the same tone without cel shading, LA Noire would be very difficult to play without the facial thingy they do, and Katamari would not work at all in 2D. The hole people get into is whether `better' graphics make a better game. Yes, better graphics do make a better game, if by `better graphics' you mean graphics that fit the style and mechanic of the game better. But most people, when they say `better graphics', simply mean `more realistic graphics', which is a whole different story. Realistic graphics are better in some cases, I've already said LA Noire was an example of that, but you can't just throw realistic graphics on any game and have it stick. You have to pick a graphics system that fits the game, and if realism is that system go for it, and if not, do something else. And that's pretty much what it comes down to. Graphics are important, but that means that art direction is important, not graphical capability.