I don't think graphics are the issue on their own. The problem starts when better graphics become the priority instead of making a better game. Some of the games I remember most weren't technically impressive, but they had great gameplay, a unique style, and felt like they were made with a clear purpose.
A lot of AAA games seem to keep getting bigger, yet not necessarily more enjoyable. Huge maps, endless side activities, and dozens of hours of content don't add much if the core experience feels repetitive. I'd happily take a well-crafted 20-hour game over a bloated 100-hour one any day.
It's hard to feel bad for a company worth billions