People are fooling themselves if they say that graphics aren't important. Everybody likes pretty looking things. If games were to only be as good looking as past gen's graphics, I certainly would not understand the need to spend hundreds of dollars upgrading to new consoles. Why not keep using current gen then if graphics will stay the same? The new functionalities? What functionality is there that is worth spending at least 400€ for?
Besides, movies, TV shows, and technology are all getting better looking. Ultra HD, smartphones that can rival with last gen's graphics, etc. Game consoles will die if they do not get better looking.
Graphics certainly aren't everything, but unfortunately, our eyes are made to like good looks, and an increase in graphics is necessary for this new gen to survive a market where there is competition coming from everywhere (Smartphones, internet boxes, tablets, etc.).
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