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Rampant ego non-withstanding, there is some truth to what Garriott says. Graphics have advanced massively over the past twenty years, but game design itself has become pretty stagnant. If anything the big releases have regressed for the past generation. His Ultima games allowed you to do things that current rpgs can't really touch. Ultima Online, flawed as it was, is for me the current pinnacle of what online games can achieve. Keep in mind this was a game released in '97, when the internet was basically running on coal and/or animal sacrifice. It's amazing to me that there hasn't been another big game since that tried something similar, instead of just copying the World of Warcraft formula.

That said though, Richard Garriott hasn't really done anything good for over ten years now. I feel like maybe the sheer size and scale of producing modern games really puts limitations on innovation.