I hate these people who slag off new hardware
And say it's the death of gaming. I'm someone who has played games since the early 80s and has worked in the industry so here's my oppinion.
Yes good graphics doesn't make a good game but bad graphics/tech doesn't make a good game either.
What advancements in technology allow developers to do is:
1. Greater freedom with the design e.g. the ability to model whole worlds to allow for sandbox design or take part in MMORG like Eve Online
2. The ability to make it more and more immersive and realistic. I've recently completed Call Of Duty 4 and while it was nothing new it did take that genre to the next level largely due to the tech. The same can be said of Project Gotham, Madden or Pro Evo etc.
Even games like technical masterpieces like Heavenly Sword that also have repetitive and poor gameplay do advance other areas such as story telling, voice acting, production values. While you may argue that style over substance is wrong, I argue that even games that are like this move the industry forward as a whole resulting in truly breakthrough games later.
Hopefully the next step for the industry is to move to 3D like the movie Behewolf and other cinema releases.
When you're playing a game in fully 3D with motion picture quality graphics interacting with the world with a realistic intuitive control system (like a Wii Remote) taking part with millions of people online in a futurustic world.
Then tell me that the technology advancements that allow this isn't important.
Or maybe you simply want to play another game of Pac-Man!