The industry may hurt itself. Don't let it affect you. Look past sites like IGN and Gamespot. Find games they don't even review. Great games still exist if you know where to look. Major sites don't review games below certain graphics treshold.
For example, Natural Selection 2 is shaping up to be a great multiplayer game, unless they break something horribly. Granted, they do have very good graphics, but are getting very little coverage.
http://www.youtube.com/watch?v=jAGDMExYyl4
You're fooling yourself if you think big studios will start to care about gameplay
because they will reach the highest point and will be unable to compete basing on graphics. You can throw any amount of graphic artists at a game, you can hire people with more interesting style too. There's always room for
more visual effects, it just takes skill and time. And there are new developments on the horizon. Look at these screenshots from id Software's Rage. Virtual textures enable textures measured in gigabytes.
http://www.shacknews.com/screenshots.x?gallery=12539&game_id=4598#img138798
This gives artists unprecedenced freedom, there are anecdotes of new people joining id Software and
thanking John Carmack for opportunity to work without texture limits. 3d artists earn a lot of money and we will only continue to see games with higher budgets.
-----
Heads of big studios are
happy to make games with little to no replay value (like Dead Space), and cinematic looks. The word
cinematic is a key here - the games are meant to be disposable. Planned obsolescence. You need to license more. (You no longer own games you pay for, you license them). Meanwhile games with decades old features like randomisation are called innovative. It's very crude and limited in games like Left 4 Dead or Diablo III, but if people are ignorant enough they call it innovation. Just like ignorant people praise Warcraft or Starcraft, not knowing D&D or Warhammer 40 000. Actually 3d graphics limit randomization a lot. In times of 2D graphics it was a standard feature in many games.
____________________________
http://www.gamasutra.com/features/20051128/adams_01.shtml