Man, you are completely taking their targeted claim and applying a bunch of additions to it, and then throwing backhanded responses based on all this extraneous crap you're soldering on.
They made a very targeted claim - developers can do better with the graphics. And while graphical style might be subjective, there's a hefty objective component that says you ought to be able to guarantee an acceptable FPS rate, appropriate textures, and models that at least give the impression that your artists have some semblance of capability. And that is EXACTLY what F5 is hitting on, because we've seen a ton of titles where the developer obviously didn't care about the aesthetics at all. Ubisoft is the best example, but Midway is on their way to dethroning them.
I get to make that claim despite the subjective nature of graphics because Super Mario Galaxy looks gorgeous, and within a year, we'll be seeing games that truly stress that the Wii operates well beyond the Gamecube's capabilities. Brawl itself looks amazing, and I'm wondering where games like Disaster will come into play.
You're turning this into a whole thing about one-trick-pony-ness and an assault on how "certain genres do graphics different than other genres." Amazing. Neither of those things have anything to do with their assertion, and beyond that, the whole genres thing isn't profound, it's obvious. Of course a fighter's engine has to function differently from a racer's. Or a shooter's, a RTS's, a god simulation's, a platformer's, or a sports's.
They aren't criticizing genres, they aren't criticizing people trying to make flying games, they are saying the graphics are faulty due to faulty developers being lazy on PURPOSE in order to maximize profits. All these other things you are bringing up require their own thread, so I suggest you go make it and hope you draw enough people in there to get some kind of discussion going on, instead of one man railing against a company because he can't get past their products and their limitations/triumphs.
Stop with all this "F5 passes themselves off as the sole authority." That's bullsh*t.