I have a lot of thoughts on this thesis, but mainly I feel like high fidelity* graphics appeal primarily to unimaginative people who don't actually enjoy getting immersed in game mechanics or stories.
Like the kind of people who would just look at preview builds and make investment decisions based on superficial appearance, and presence of currently "hot" (profitable) features.
PS no offense to people who have a hard time getting immersed in worlds that aren't presented with hi-fi production values, but I feel like they're unlikely to be reading this comment section :p
* Speaking of resolution, poly counts, ray tracing, etc - as opposed to aesthetic or artistic beauty