Speaking theoretically, as a thought experiment, if it meant games cost less and took less time to make, would you be willing to accept last gen levels of graphical fidelity, yes or no?

Verry much okej! Ps4 graphics + 60fps/ bigger draw distance less popups.

High graphics are verry overrated

If you like games with lower budgets and shorter dev schedules, you can get those from today´s indy games.
So if that´s what you like, buy those games. If people aren´t buying those, then that´s up to their tastes/preferences.
High budget games existing and having an audience doesn´t detract from the validity of lower budget indy games. So what is the issue?

I want to play good games, creative/artistic games, and games that were relevant to me in the past. Very often the more original and creative games are indie titles. I do find it generally true that games that focus on new and cutting edge graphics aren’t all that interesting or original; there are the exceptions, though.

I’d say about 20 years ago, once we hit the PS2 or Wii era, there was a shift to where devs stopped try to max out on the numbers on their games. Today, the vast majority of games aren’t all about energy-chugging graphics; and much of the time, those that do aren’t particularly good until years of updates are complete. And really, most people don’t care too much about high-end graphics unless it’s some kind of fanboy flex to try and intimidate or impress other fanboys; the type who are obsessed with being “hardcore” and not “casual”, because they think it will get them chicks or something.

Either way, the most highly demanded hardware isn’t focused on giant leaps in energy-chugging graphics, but the hardware that’s makes gaming more pleasant and ubiquitous.

I will say more - I would be ok with PS360 graffix

As someone with a bunch of retro consoles, games, Modded Dreamcast with HDMI out and GDEMU mod plus a Polymega to play old games in HD plus clone consoles for SNES and Genesis and a couple mini consoles. Yes. TBH Dreamcast are my fave visuals ever along with anything NAOMI or late 90s/early 2000s Arcade. I play 6th gen consoles often and played a bunch of new to me 360 games last year. Top end graphics are not a priority for me but fun. If it meant more risks taken. More variety again like even the PS2 era. I'd take that in a heartbeat. Mostly driving for better visuals has publishers being risk averse. Boring.

60FPS and good image quality are much more important to me than cutting edge graphics.

Good performance and resolution should take priority over graphics settings.