The graphics are fine but time for more interactivity and more dynamic worlds.

Take GT Sport, looks amazing but all the lighting is baked in. Next gen Time of Day and dynamic weather should be on all tracks like in DriveClub, yet at 60 fps.
Death stranding, same thing, amazing looks but all static.

It needs to be done better than Halo Infinite though, that seems to have taken a couple steps backward to support dynamic lighting.

Basically games should go into the 4th dimension, time should have an effect on games. Worlds that age, weather, seasons, permanent changes or slowly recovering.

I cant give a straight answer because it depends on a lot of factors

Genre of game
Single vs multi player experience
Method in which the story being told
How visuals are used in the game play

For example if am playing a game that going for realistic graphics and telling a story though a lot of cut scenes then am going to be very very disappointed if the graphics not significantly better then any game that was made 5 years ago.

On the other hand if am playing a MMORPG with friends then as long as the graphics not so crappy that it affecting game play the graphics are basically irreverent for me. It more important the graphics design around the game play in a MMORPG to me.

I also perfectly happy playing a completely animated game and as long as they keep a consistent art style it don't need to be realistic at all.

If a game design a cut scene that by design showing off the graphics of the world then it better be graphically impressive and if you making a game that not graphically advance then take that in consideration of how you structure the cut scenes and where on the screen someone eyes with be drawn when watching that cut scene.

Also pricing matter am going to be a lot more forgiving of a game I payed $10 for then a game I payed $60 for.

I'm quite satisfied a few standout titles like The Last of Us 2, Uncharted 4, RDR2, Horizon ZD, God of War and FFVII remake. These are creme of the crop and do look good but I'm always craving for more.

I think as soon as Naughtydog releases their stuff, it kinda have ruins my expectations for other games their engine and expertise is just on another level. But it still hasn't got a point where I'm like. Yeah, this is good enough.

Next gen, will bring us closer to CGI quality in a few years. Which, I cannot wait for (ND next game and GOW2 is going to look insane). Beyond that (10th gen) we should have hardware capable of considerable better lighting - I can see Raytracing being the standard on everything. So yeah I would say its important for me.

At the same time, I'm happy playing WoW and Rocket League and probably spent more time on those lol.

I mean, these are the graphics I grew up playing:

Just seeing how far graphics have come since my childhood still blows my mind sometimes. Current gen games almost look like what CGI did in my teens.