Jason is a smart guy. His ability to spot such trends in game development and adapt in time puts him above many, in my book.
We are already starting to see the beginning of this - it's getting increasingly difficult to make great looking games if you don't sit on a solid budget. Conversely, everyone but us, graphics whores, don't really care about graphics that much anymore (just look at GTA3/VC sales). If something is good looking *enough*, people are satisified. Just as Joe Regular doesn't care how beautiful cinematography or photography particular movie has, the same is starting to be applied to games.
It will probaby matter even less in the next generation, when graphics in every game will reach such a solid feel that few can complain about them, and when making something outstanding looking will be restricted only by budget, talent and development time.
I also think some Japanese developers would do good for themselves if they start spotting such trends (not necessarily this particular trend), or they might get stuck with making games noone is buying, or great games which they try to market to wrong groups of people.
