Graphics can only get so good, and then they're pretty much as good as they can be. And bloom lighting everywhere and glowing people don't qualify as "good graphics" in my book. I'd say once you hit the Bioshock, MGS3: Subsistence, Black, Burnout 3 and Virtua Fighter 5/Tekken 6 levels, you've gone about as far as you need to with pure graphics, now it's time to work on those little, unimportant things, like FRAMERATE, MUSIC, STORY, and a game that's ACTUALLY FUN TO PLAY.
Oh wait, maybe game devs should work on those little things first, eh?
And sometimes injecting games with character is more important than giving them "good graphics." Personally, I think Midnight Club 3 looks better than GT anything (what with all the glowing lights and blur effects,) Chrono Trigger looks better to me than Mass Effect, and Dragon Ball: Advance Adventure or Kirby: Nightmare in Dream Land look better than GTA4. Again, to me. For me, it's all about character and world designs, and how well the intended look meshes with the story/gameplay/music to create a cohesive and plausible world.
For example, I don't want cel shading if it doesn't fit in with the theme of the world. And I really, REALLY don't want gritty, realistic graphics if the game isn't going to present everything else in a gritty and realistic (read: mature and responsible) manner.