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I can still have fun with Zelda 1 from the NES but yes - They do matter.
Especially since i started to play a lot on PC.I know what is possible and i want value for my money.

Of course games need to have everything besides graphics too but most developers aren't good enough for this.
Its always lacking somewhere else if they focus on one part(graphics,story,atmo,concept etc) except if you are a Sony Developer.
And sure there is a possibility you can counter that with Artstyle but not every game concept can use for example a Cel Shading like Wind Waker.Some games need the realistic look and it gets more realistic with more power and better hardware to achieve the needed power.
The Last of Us for example would have never worked like that on the PS1/2 - It is in need of the possibilities of better graphics and the ability to produce with them a realistic atmosphere and authenticity.With better graphics you also get the ability to show realistic fear on the characters and create something like a soul for them.