Graphics are the first thing people notice when they're playing a game. They're the initial impression, and the most shallow, easy way to determine if a game is "good". High quality content doesn't sell as well nor is it as sexy as high end graphics.
The more complex answer has to do with the ways in which game development evolves through the scope of a single game. As you develop a game that (almost inevitable) ends up going over budget and running late, you can't just start putting poor art assets into the game. You have to be consistent, even if you're only making a mediocre game. The easiest way to cut development time is to cut content. Make the game short, limit the scope of what people can do and how many enemies there are, the types of weapons, etc.
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