Don't you think it's sad that we view such an incredible medium in such a fancy-free way?
I don't know. 'Fancy-free' isn't quite how I'd put it. I just wouldn't have compared games to linear media like books and movies. I see them as something like paintings, which do much the same thing as free-form games. Paintings don't force a viewer to take one particular path in viewing them, and they're often remarkable for their many levels of meaning. In many ways, it's the opposite of narrative - complexity and a lack of obvious focus are goods because the art is about letting the viewer/player exercise his freedom. I wouldn't call it an inferior way of being, just a different one. They don't 'say' anything, but they don't have to. They can appeal directly to an emotional level.
Incidentally, I think that art in games is hampered by technical improvements over time. No new technology has simply obsoleted older methods of painting or making music, but there are clear and obvious ways in which every old NES game could have been improved. Unlike other media, games can't ever be seen to exist as fully-realized ideas - there are always technological constraints on what an artist can realize. Likewise, the tendency of games to copy each other makes it harder to recognize original art, and I think that gamers often get so used to elements of actual artistic worth in games that they don't recognize them as such.