He has a point, but I don't agree with him entirely. Yes, if you want to focus on visual realism as a value for your game, that value would be done better and appreciated more on the HD consoles.
However, games that are not stylized have succeeded perfectly fine, Call of Duty and Resident Evil, for example.
A game I'm developing with some friends:
www.xnagg.com/zombieasteroids/publish.htm
It is largely a technical exercise but feedback is appreciated.