If the "tune" sounds well (rythmically) then it is percepted as a good music or theme by most people, regardless if it's on a home theatre 7.1 channel stereo or grandmother's mono kitchen radio (the 7.1 just makes it sound even better).
Same goes for TV sets - plus LCDs (by far) don't vary so much in quality as some pretend here. A good looking game won't look much worse when watched on a "bad" TV set (and vice versa).
What you are saying, to general consumers technicals don't matter and the tune -- or in graphics, art -- is what carries the day.
And I would agree with this (although I am not sure you would draw the same correlation). Which explains why artistry and the "cool factor" is usually what defines what games look good to the general population.
Which goes a long way to explain why many games cut corners on filtering and anti-aliasing... even resolution... and putting that part of their budget into other elements of the game. Ditto 30fps and 60fps, some game types aren't as framerate sensative (ditto most consumers), so the extra resources at a lower framerate is seen as a general plus.
As a PC gamer I don't tend to agree in every case (I can pick high-AF, high-features, low resolution if I like that combo), but I am not a general consumer. Seeing Xbox owners argue which 360 game looks best, and Halo 3 in the discussion, indicates consumers at large look at more than just "pure" Image IQ.
Ps- Actually, a lot of LCDs are as bad as I am saying. Most were (are?) 6bit which shows a lot of banding in low-contrast situations, and many have low response times. Darks are poor on most, and contrast isn't exceptional.
Maybe it is because I have a 21" Sony Trinitron CRT next to my LCDs (8ms, good contrast for an LCD) and used to do web design work for a living, but I wouldn't argue that most LCDs have "great" image quality. I use them, they aren't horrible... but for IQ I would take a nice Plasma or CRT over them for the above reasons.
Maybe some users aren't noticng the banding in low contrast gradients and other artifacts and color-misrepresentations that LCDs are prone too... but then again, a lot of people cannot identify or notice aliasing either.
Everyone is sensative to different things.