Really good use of Jim Sterling in there, I'm sure he would appreciate it!
On topic, I guess my grip with statements like "X can never be art" is that if the person saying it is actually saying "X can never be good/high art" then why don't they say it like that? Because if you say something isn't art, of course you are going to get a backlash of people saying yes it is art and here are the various reasons why video games are art. That way, we can hopefully have better discussions on the nature of treating video games as either high art or at least what might need to be done to get them to that point other than simply stating the obvious over and over again.
As to whether or not we are getting to that point of games being high art, I think we are getting closer to that. Spec Ops: The Line was able to make me feel shame and guilt for my actions in that game and it wasn't because the game kept on telling me what I was doing was wrong. I was able to see it myself and experience it as I played the game, so much so that I would like to try again to see if I can "fix" what I did, though I know deep down that won't work. If some other games could come out that did what Spec Ops: the Line did, I think we would be on the right track.
Though at the same time, I do like to play games just for fun as well, as I like having fun more than being depressed by my actions all the time!