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I think that if a game has amazing graphics, then it is often heralded as a great game. However, I don't think the converse is true. A great game does not need amazing graphics to be heralded as a great game. There are other things that contribute to immersion: great music/sound effects, a storyline that is fun to follow, or the personalities of the characters. Amazing graphics are not needed to immerse a player, unless you are generally unaffected by music and a good story.

I'd rather more games come out, as graphics or whether or not the game immerses me does not matter to me that much.