I think pcchen summed it up pretty good too. I also think there's another big factor that's not being taken into account here. Growing up as a kid, when playing games, you usually loved them all, or most of them. Every game you played, was being played with child-like wonder. We used our imagination where things were lacking, and generally it's much easier to have fun and be satisfied when playing games as a kid. Now that most of us are older and adults now, it's hard to view games with child-like wonder anymore. Our criterias and expectations are raised very high, and we're let down easily.
I read a story once a while back, that made sense. It involves a movie critic who reviews movies for his job. In every movie he watched, he would always pick it apart, and focused on the negative more than the positive. One night, he took his beautiful new girlfriend out to a movie on a date, and at the end, she asked how he liked it, and he picked it apart and said how much it sucked. She felt bad because he didn't have a good time, and that kept being the case for future movies. After a while, he realized that he was ruining the experience for her, because she was enjoying the movies, yet he wasn't. Then he decided to change his perspective, and not pick movies apart, and just try to enjoy them for what they were. In the end, he did .... and he got fired from his job because every movie he reviewed were great.
So I decided to do that, and I've been enjoying a ton more games lately. I try to play them with some form of child-like wonder, and try to have fun. Sometimes that just can't be the case, and you end up playing a crud game, but that's just inevitable.
FWIW, the last game to wow me graphically is Morrowind. Gameplay-wise, would have to go to Grand Theft Auto 3 for the PC. Right now, I'm enjoying NWN immensely, and Warcraft 3 too. To me, it's a great time to be a PC gamer.