Graphics aren't that important imo, gameplay is a lot more important.
I think too much of an emphasis is put on graphics which means development cost increase dramatically and as a result only large companies can afford to make games that will actually sell.
It's all about a balance, between the design and the technology. The design is what makes the technology work, and the technology is what makes the design visible.
Story is actually a part of the design of a game as well. It's considered an Aesthetic design. Where as things like "what does what" and "how it does what" are considered Mechanics in the design.