Graphics can be really cool, but it's much more important to have great gameplay first. If you can do both, that's awesome, but if you just make a game shiny and don't worry so much about a compelling narrative or tight, FUN gameplay, you have a failed game.
They're GAMES people, not movies. To illustrate further, I would say Monopoly (the board game) is more fun than 90% of the games on the HD systems (I'm leaving the Wii out because I don't think anyone would argue that it is "all about the graphics"). I believe that video games have the capability of trouncing board games for fun, the fact that 9 out of 10 games don't shows that there is major problem with the design philosophy. IMO of course.