It's a combination of things. Resolution matters regardless of what people say, that being said it's the lesser of the 3 things IMO that make games look and play better.
A higher resolution shows more detail in a like for like game, there's no arguing that. A good example is the recent upgrade of Final Fantasy 13 with the Xbox 360 vs XBO-X comparison. Moving from 720p to much higher resolutions (even 1080p) is a significant upgrade because it allows more details in texture work to be seen, especially when texture work from last gen was sometimes lower than 720p assets. Resolution = how our eyes see things.
But graphically speaking texture work, lighting, polygon count, and artstyle are what make game look more appealing to our minds / preferences. You can have a 4K resolution background in a game, but another game at 1080p with high quality texture work, Dynamic lighting models, high poly count models, and a realistic or stylized artstyle can still look much better graphically, because it overall look appeals more to our minds and preferences.
Any resolution over 1440p is generally enough to provide a very clear and sharp image, especially backed by Anti Aliasing, and why IMO 1800p upscaled would be the better choice graphically from next-gen consoles rather than aiming for full 4K (at least for graphically intense games / games aiming for 60fps).
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