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I'm fine with bad graphics unless they totally ruin the experience.

Disgaea 3 looks pretty bad for a PS3 game, yet I love it more than I loved FFXIII (which looks stunning). Hell I still play Genesis and Saturn games and think they look just fine.

The problem with Gran Turismo 5 is that it did set people's expectations too high. The game looks good, just not godly-perfect looking as everyone was hoping for (the long development time only added to the hype) .