Classic case of oversimplification to be honest, coupled with picking an abritary line in the sand - in this case the Wii vs HD consoles.
Sure, there's a vocal minority that put graphics on an odd pedestal where they attribute more weight to them than makes sense overall, but let's not forget the 'video' in videogames. Visuals are a key element of the medium and with tech advances it is quite correct they should improve.
It's easy to see the Wii as pure and the HD consoles as graphic whores, but compare the Wii to early games and the Wii is the graphic whore. Should we still be staring a black and white blocks?
Graphics deliver the visual design and experience, and for some genres in particular they are vital for immersion and the effectiveness of the game.
Now I admit I find the guys arguing over pixles to be annoying at times. Who doesn't? But don't over-simplify. From the beginning graphics have been a key part of the lure and the experience, coupled with gameplay as well of course. Super Mario Galaxy is a visually impressive game and wouldn't work nearly as well with weaker graphics, and neither would titles like Uncharted or Heavy Rain for that matter.
Something like Red Dead Redemption in my views needs to be as high res as possible to sell the experience of being there. In fact, truth be told I'd like the game to be at PC levels of resolution vs PS3/360 and it would make the experience of that particular game more enjoyable.
I remember loving text based adventure games - but that doesn't mean I wouldn't prefer a Matrix like simulated reality where I'm really wandering around the caverns vs reading a description of them where it available.