I'll take Fallout 3, Uncharted 2 and Call of Duty 4 (including online) over any 3 games you can name from any of the previous generations.
Donkey Kong Country, Super Mario Brothers, Ocarina of TIme (And I´m a Sony Fanboy)
Or Civ II, Simcity 4 and Age of Empires II, just to bring PC into it. (and dead franchises...)
So I think the guy has a point. Of course, there has been some good games this gen. like Demon Souls and Valkyria Chronicles, but gameplay has taken a step down to graphics and that´s not good. Take a look at GTA, or even CoD. I´m sorry for MW lovers but CoD2 singleplayer kick any other CoD ass any day and online can s*ck my $%¨&¨.
I think the problem in the industry is that everybody is shooting for the same hole, instead of investing on the niches. There´s differents tastes on the market that needs to be fulfilled. If the companies focused on their fanbase instead of trying to ever expand, then they could avoid the incoming disaster. Problem, the aproach the OP describes requires an always expanding budget for the next sequel, in order to atract even more people.
They also casualize the gameplay to make it more accessible, wich alienates the former fanbase. Now, this model try to make everybody buy the same games, more or less, and forgets that we gamers are not all rich. The overall agregate atach rate now is 8, if i´m not mistaken, so if you give the same "big budget" treatment to all games, most of the hundreds of games released per year will fail to make a profit. EA shows that 8 games cannot suport all others.
The best of worlds would be to the companies to focus on gameplay and make games around them. To mantain and satisfy the fanbase. If your game sells around 4 mil each release, don´t try to out grow it. If necessary charge more, but deliver, and we gamers will gonna buy it. Damn it, I would pay 70 $ or even 80 for a good and true Civ, or a good and true SImcity, if it is necessary. There are many gamers who don´t have their fix because the market is aiming to the masses, jeopardizing everyone.