Games are making big strides. Least as far as technology goes. But on the art design side of things? Urgh. For every Half-Life 2 there's a hundred games like Gears of War, whose only claim to originality or uniqueness in their visual design is...well, they don't really have one. Anyone nodding their noggins in agreement with that above statement should go check out Gamasutra's interview with Moby Francke, who was art director on Team Fortress 2, where he says stuff like:
I think video games are at such infancy in terms of art style, actually developing it. We're dealing with 4000 years, really, of art and conceptual design.
For it really not to be utilised, and for the industry to basically dwell in a certain type of genre which has been around the 1980s up to present time, it's pretty much all they're embracing.
It's the same way, you have Star Wars and the original Stanley Kubrick movie 2001. And people embrace that genre of outer space, so to speak. And it's continued to this very day. Hopefully people will wake up someday.
Maybe! Heck, as it stands we'd settle for games that could just match Star Wars and 2001 for design, let alone move on from them.