Personally, I'm against using too many cut scenes to tell a story. When a game uses them too often it can create a disconnect between gameplay and plot that results in breaking immersion and making the player feel less involved. I think FFXIII is a good example of this, because aside from most cut scenes in it really doing nothing to advance the plot, it becomes a game of fight some battles, sit back and watch a cut scene, then go fight some more battles. Lather rinse and repeat. It's made somewhat worse by the fact that these cut scenes are a bit jarring when you get to them.

I've preferred the way things are done in games like Half-Life or Portal for a long time. Much of the story is either conveyed while the player is still in control of the character and can move around and do what they want, or is simply strewn about the game world for the player to discover on their own. It makes for a much more immersive experience, and in the case of a game like Portal, can result in a story with more impact than had the details been spelled out for you in a cut scene where a character simply talks at you while you listen.

That doesn't mean cut scenes have no place in games and can't be useful tools in conveying the story or getting the adrenaline pumping, but far too many games seem to rely on them rather than exploring unique story telling methods in the medium which are often more effective in games.