I played Bioshock last night and the graphics were the flashiest I've ever seen. There was a hundred things going on, but I couldn't look past the beautifull textures. I had a headache within minutes. Having games looking that nice is not necessary. IMHO, graphics should not progress much beyond the N64/Gamecube era, because after this it becomes a chore to focus on gameplay.
Games like FEAR and Stalker are as far as graphics should be pushed.
Thanks to Nintendo for being aware of this.