It is viable as long as the market seeks it (which it continues to). Like I said, we're nowhere close to that point — be it financial or technical.
Besides, you said: "Meh. Graphics cannot be improved that much at this point". That is factually incorrect no matter what standpoint you take.
I meant it in the sense of deminishing returns. If a developer spends tens of thousands of man hours and millions of dollars to craft a game to be the most beautiful and graphical astonishing game ever made, it's not going to sell much more than a game that just looks great, and the difference in resources needed is clear. At some point, the investment ins not worth it, so why bother improving the graphics?
You know it deserves the GOTY.