"Technology has not yet reached the point where gamers can develop real emotional attachments to on-screen characters"?!
In the words of the great Stephen Fry, that is arse-gravy of the worst kind.
How many gamers do you know who admit to crying while playing Final Fantasy VII (you know where)? Exactly.
In my little world at least, it's the writing that makes you care about the characters. Take Mass Effect - your party members especially are characterised really well, to the point where I would take Garrus along wherever I went just because I liked the guy. And Ashley, despite her combat effectiveness, would always stay behind due to her being a xenophobic *****. She had her redeeming features, of course, but her attitude toward her non-human allies was a bit much.
Not to mention that I genuinely regretted killing Wrex on my first playthrough, especially when I learned it was possible to talk him down.
I don't need flashy, ultra-realistic graphics to connect with game characters, thanks.
There isn't anything I can contribute to the "evil corporate prick discussion" that hasn't already been said, sorry.