Last generation, games looked good and played good. Nobody was complaining. We were all playing games like GTA (which had shit-graphics and shit-controls, mind you).
This generation, we have a choice to make. We can buy the Wii, which offers a minimal upgrade in graphics and the biggest upgrade in controls since the analog stick. Or we can buy the PS360, which offer a huge upgrade in graphics and power, and nothing else.
A 360 is shinier and stronger than an XBox.
A PS3 is shinier an stronger than a PS2.
A Wii is just a little shinier, but brings the control revolution to the industry, and it will be reaping the benefits of that revolution for years.
To argue that the Wii remote is not completely revolutionizing the entire industry and is the sole reason for the fastest sales the industry has ever known, is simply to say "Yeah well, but I don't like it" and stick your tongue out.
Graphics will always increase forever. Controller upgrades happen maybe once a decade. Thank Nintendo for that.
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