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Art direction > raw technical horsepower.  A fool with a tool is still a fool.  But give a great artist less modest resources, and what is created is superior.

Like consider the minimalist approach Microsoft uses to promote Halo.  They even used action figures in one spot.  The ads work, and are beautiful for what they are.  They are better than something else which pushes a lot of polygons.

The case of Kirby's Epic Yarn is the art style and execution stand out, in the minds of some, as superior to what is seen in all these FPS style titles.