Yes, I think that we were younger and the relative newness of the media probably had us less critical (and more excited in general), but I have to say there is just something to be said about hand drawn graphics.
I make no claim that moving to polygonal rendering over sprites was in any way a bad thing, but it remains a rare thing to find true character in art direction since the 3D realm got tapped into. The style and freedom that sprite-based graphics could accommodate allowed for (great) games to go beyond their technical limitations and let the imagination fill in the rest. Right now, we're in that awkward middle point where we've tapped into something that is technically superior in every way, but isn't
quite realistic enough to suspend disbelief, and too realistic to let the imagination fill in the gaps.
The games over the last 10 years that have impressed me the most, that have sucked me into their worlds the deepest, have almost always been those that took the road less traveled and ditched the rigidity of realism. Zelda: Wind Waker, Beyond Good & Evil, Skies of Arcadia, Fable (I & II), Ratchet & Clank... hell, even the god awful looking original Alone in the Dark left a deeper impression on me than ANY of the modern Survival Horror games, and that includes Dead Space and RE4. I don't think I need to remind you what that little low-rez haunt-fest looked like, but it was sure insane at the time!
Anyway, going longer here than I intended, but that's my take on it. Modern polygonal game design often looks too good to need to work for it, but not quite good enough to fully immerse. Soon...