Whether they try to appeal to both demographics or not, the effort that has to be put into a game to reach that "status quo" skyrocketed over years and doesn't show any signs of slowing down (normal mapping, anyone?). I can hammer together a Quake 1-level model in half an hour, but I need two days for something in today's range and probably a week if there's normal mapping involved (never tried that, keeping quads is awful). The more resources you need to put into making something up to par the less you have left to push the envelope further. With prices approaching lower earth orbit publishers are less and less willing to risk something. Okay, that mentality is more common in the west than the east and was a problem five years ago already, buut look around! On the PC there are maybe two major innmovative titles coming out, everything else is just "[Insert successful game] but better."
Granted, if innovation doesn't sell maybe that's a sign that people don't want new ideas. Maybe they want something like Hollywood: A few stereotypes of movies that only differ by the amount of special effects and famous actors in the cast. Of course, everyting Hollywood produces nowadays is garbage, but this garbage sells. Somehow garbage always outlasts the good.