I'm split on this thread. I don't have a problem with cutscenes but I do have a problem with graphics.
I enjoy good stories, and I find lots of them in both TV and games. In terms of games, what I've said for a long time is that if you want me to murder 300 guys in the next 10 hours, I need you to explain WHY. It doesn't have to be original, it can be the most cliched story about terrorists, alien invasions or ancient demons, but I need you to justify a goal that I can care about, or else I'll quickly lose interest.
I find that I can understand stories better if the key plot points are provided in some form of cutscene. Whether its a non interactive video, or like a Mass Effect / Dragon Age style conversation section. My attention is entirely focused on the dialogue.
One of the things that annoys me in videogames is when a character tries to give plot exposition in the middle of a gameplay section. They're saying all these words over a radio or some other communication device, but I'm not paying attention because I'm getting shot at by 15 guys and there's explosions and oh my god shut up and let me focus on not dying.
Having said that, I think cutscenes can be overused. If you've got a 10 hour game that has 5 hours of cutscenes, that might be a problem. If you've got 5 minutes of gameplay, cutscene, 5 minutes of gameplay, cutscene, and so on, that can be annoying.
On the other hand, I really wish the industry would stop its obsession with graphics. Smooth performance is more important than shiny graphics. And I personally want to see developers commit more resources to creating smarter games. I want more tactical depth, I want better AI for both enemies and friendly NPCs, and I want worlds that will noticably change due to my choices.