Wow. I didn't read every comment, but it seems at least 99% of the commenters agree. That has to say something...
I can't put my finger on the exact moment where graphics took over as the primary concern for game designers, but it must be somewhere around Doom3. I still haven't played that game, and I never will, because it's shit.
On topic: anyone with eyes can see, that graphics are overhyped. Gameplay, art and story is the key. Hell, when Darwinia came out, it looked like a fucking fossil compared to 2005 graphics (when it was released), but I still consider it one of the best games as of today, along with Introversion's other game Uplink: Hacker Elite (which is essentially a text-adventure with point&click elements) and my all-time favorite game StarCraft.
But the most sad thing about this is not the pursuit of better graphics, but neglecting gameplay in the process. Gears of War is essentially and interactive cutscene, Far Cry 2 is boring as shit, and many MANY games that are released today are glorified rail-shooters with quick time events. Gameplay of these new games has been dumbed down to the point a toddler with Down Syndrome could play them...and win...
The console titles can be won by random button mashing, and the PC titles' walkthrough consists of "hold down W and the fire button. Wait. Win." No need to think. Eehhh...
For example, Fallout 3. It's a nice game in itself, but it's not a Fallout game. It's just "Oblivion with guns". I wonder how many of the Fallout 3 fanboys actually finished the first two games. I guess not too many. In the first two Fallouts, you had to use tactics, logic, strategy...basicly your brain to get through. In Fallout 3, you just run around and shoot everything that moves. It has its charm, hell, I liked Oblivion (aside from the fact that is was fucking boring), but the originals, the Jagged Alliance and X-Com games were turn-based for a reason. I agree, those were glorified chess programs, but you had to use you brain nevertheless.
Today's games doesn't require thinking or imagination. They just hold your hand and yank you through the story and only require you to press some buttons to create the illusion of interactivity. There is no death, magically regenerating health, life saving quick time events, checkpoints on every corner...ehh. There is absolutely no penalty for playing badly. In earlier games, if you died, you lost money, lost skills, you lost plot elements and progress. That was game's way of punching you in the nuts for messing up, and it gave an incentive to not do that again. The reward for using your brain, learning to play and practicing was...actually...finishing the game. Today, there is no penalty for playing like a retard and no tangible reward for thinking or figuring out stuff. This stupid achievement system is just a transparent, idiotic hoax. Wow, you pressed the jump button 1000 times, good for you. OMG, you drove off a cliff, fell a mile and died horribly 2000 times in a row, in racing game, way to go dude! Here, let me increase this totally arbitrary and meaningless number for you. Now go and brag about how good you are at repeating mindless tasks for no apparent reason.
Bleh.