I'm only reading it now, and it touches on many of the things I've been afraid of. I think companies need to find some way to simplify graphics and go to game design basics. Maybe some sort of "standard engine" - several, can be made and used by many? It's a pipe dream, but one thing that could help.
My older brother once said "graphics don't impress me", and would keep saying it if graphics were ever pointed out to him.
Katamari Damacy is selling, and its graphics look like, well, not much. That is a good, but minor, sign. If nothing else, it means people are becoming less obsessed with graphics, to some degree. Maybe we are beginning to hit that "doesn't really matter" point soon, where people don't care that much about "impressive" graphics because they are no longer impressive?
I hope so. Development time is spent on many things, and I'd rather it be spent on level design and gameplay balance far more than graphics and sound.