I completely disagree with that.
First, the graphics have two goals: to entertain the player during the game, and to convince a potential buyer to buy the game, via screenshots/movies; backgrounds contribute a lot to the wow factor of screenshots.
Second, fighting games IMHO are frequently played in party context, where two people play, the rest are staring at the screen; beautiful environments are improving the game for the spectators.
(Not a fighting game, but I appreciated the Bayonetta demo much more when I was watching somebody else play it, than when I played it myself. Bayonetta is less likely to be played in a party environment, so I would agree more with Dr. Nick's point about it.)