This is a very silly question.

Better graphics make games better. 

it's society that teaches people what the definition of 'good looking things' is...

for instance, marilyn monroe wore a size 12 dress, whereas today's 'hot babes' have to wear a size 4 or less, lest they be considered 'fat' or 'overweight'

lol because, well at least for me, if a game has bad graphics it turns me off and i cannot bear playing it.

example. timeshift for ps3 looks like shit.

i just tried spyro riptos rage on my ps3, and while the graphics were sexy back 12 years ago, the story changes now. i couldnt bear playing it.

one of the reasons why i didnt get a wii. i cant stand bad graphics!

Eyes are some of our most important sensory organs.

Is the same movie with great special effects viewed on a iMax screen more enjoyable or is the same movie with bad special effects more fun on a black and white telly?

Graphics matter a lot. But there's more than just graphics. A good movie may be more fun to watch on a B&W telly than a really boring one in an iMax cinema.

I think people here often look at things too much black & white. Graphics are important, gameplay, story telling, acting performances, audio, convincing or pleasing virtual worlds, etc, etc are all important.