He's taking it a bit too far in the other direction, but he has a point. Nobody says the games can't change or grow with the technical possibilities that allow for a more cinematic experience, but a lot of game development tends to forget that the core experience is about interactivity. Going story-heavy is a risk because your game needs to shine all the brighter or it will simply be that thing that gets in the way of the cutscenes, or you have cutscenes that constantly interrupt your flow (if you have the other problem of a good game with poor story)
The industry will change for the worse as folks like Miyamoto leave the scene, because they worked back in a day when a video game was a very organic product and not a mashup of multiple different industries. Their generation understands where the magic came from. While there are many very worth developers of this era, all of them operate in a box, bound by convention. None can recall when there were no conventions, and this colors their thinking.
Monster Hunter: pissing me off since 2010.