I think the wow factor from graphics has died down over more recent years. Like there was a time when people were just so amazed that you could make real time 3D on a computer. During the crazy show off the new technology phase I think people actually forgot that there were games even before computers, and the elements of making something fun haven't really changed for hundreds of years. Its just the form that has evolved.
Take flappy bird for example, it is based on the very old old game of bouncing a pingpong ball with a bat, and seeing how long you can keep the ball up. So why is flappy bird fun, it is pretty much for the same reasons that bouncing a pingpong ball on a bat if fun. Very simple, high level of skill, and obvious self improvement as you play it more.
Things don't progress in the way that people really expect as well. Like there must have been a time when people though that movies would replace reading a book, but that didn't happen. People still enjoyed reading, which kind of goes to show that a new medium does always replace the old one. Like with amazing graphics, its doesn't replace the use of simple graphics.
Ahhhh graphics.... I was thinking the same thing about movies while I was watching Man of Steel the other day.
The abondance of visuals just made me want to throw up the entire time... actually, all the recent movie trailers give me the same sickness.
We've crossed the line of the too much visual explosion awesomness I think. It really leaves no place to imagination.
"Bad"/"average" graphics (but still with a careful design) gives you much more to imagine and to dream about.
Everything is so crude nowadays (even sex) that people's imagination is suffering from it.