There are a lot of great games in this generation but I agree to the fact there isn't much innovation. However, this is not surprise but the reality in how things evolve. There aren't much difference between the NES and SNES generations except for the graphics. The N64 generation introduced real 3D graphics that were perfected last generation and the current generation introduced online modes (PS3/360) and motion controls (Wii). Thus, I'm not surprised that software development also find hard to bring innovations in the field. It was easy in the 1980s as everything was new and the whole scenario was under construction. Nowadays, as gaming is better established, it is harder to get anything new.
Still, I checked quite a few very innovative and good (there is no point of being creative without doing a good job) games in this generation: Wii Sports (motion controls and Miis enhancing the familiarity of the experience), Demon's Souls (original online mode allowing cooperation and competition), and Silent Hill: Shattered Memories (game adapts to player psychological feedback changing the environment). Also, there are dozens ofinnovative, though not groundbreaking, games in this generation: Bioshock (inventive setting creation and presentation), Prince of Persia 2008 (innovative checkpoint system), Enslaved: Odyssey to the West (superior acting), Super Mario Galaxy (groundbreaking use of physics in a platform game), and many others.
P.S.: Sorry Heavy Rain fans. I tried to like it but I couldn't.:(
