This is only hurting those who let it hurt them. Mostly large companies and those developing "AAA" games.

Handhelds and indies are still full of games that don't even attempt to have photorealistic graphics or styles, and they are, in my opinion, destroying most of the mainstream market in terms of quality.

As long as people continue to buy the games based on visuals, they'll continue to sell and be made that way. Eventually, I'm sure, the bubble will burst and there will be another video game crash, but I don't think we're anywhere near that point. Pretty games sell, even if they're not that good, and require far to much in terms of resources to make.

It's simply our job to make sure that those games which put substance over style continue to sell.