I really only have a problem when a game hits the same damn look over and over and over and over again. I'll use the Gears Of War games as contrasting examples.
The first Gears takes place in a lot of destroyed cities, so the washed out color fits the mood (as it did in Fallout 3). This isn't meant to be a colorful playground, the color scheme fits the mood of the piece. The problem is you're stuck with the same mood for almost the entire game.
It's played much better in Gears 3, which still uses a realistic color scheme, but it mixes up the environments, so when you enter a washed-out gray city, you feel the mood shift.
And I think we're coming out of the monotone gray-brown period for the most part. The major devs have taken the complaint to heart and you can see games introducing more and more color into their games. Modern Warfare 2 was usually more colorful than Modern Warfare 1 (which proves a more diverse color palette doesn't make a better game) and New Vegas was far more colorful than its predecessor.
Mind you, we still have Rage, which shows that id has never quite come to grips with color since going true 3D

Although it's still more colorful than their previous games, so there's progress even with the inventor of the brown shooter.