Yes, yes, I know -- we all believe in setting high standards, but when I bring up the "limitation" issue, or the "art vs entertainment" issue, y'all seem to think that I'm pushing for a demolition of all standards and a "let's throw some crap at the wall and see if it sticks" kind of approach.

The main point of this thread has to do more with the standards of the audience.
I agree. Here's a case in point: you all doubtless have kids or friends or nephews/nieces who are teenagers, right (not just who *think* they're teenagers!)? The trend that I've been seeing, for the past several years, is more and more emphasis on entertainment value and--if anything--less interest in the bells and whistles and eye-candy aspect. Castle Crashers and Alien Hominids are big hits, and they're basically 2D platformers that were done with very witty storylines and fun gameplay - almost what the art world would call "minimalist." Other games are even more sparse -- like "N" and "N+", which I've seen kids play for, literally, days, though it's hardly much more sophisticated than the old "Asteroids." The success of the "Watchmen" book (and many imitators) is another case in point, as is TF2, not to mention this really cool music-video that my son showed me the other day:
http://www.youtube.com/watch?v=gMEhescEBaE (Flobots--Handlebars).
My point isn't so much that you have to reduce your standards; it's more an issue of "level of detail" and resolution -- the idea that, rather than trying to fight the ever-increasing demands of the form (higher resolution levels, more and more realistic shader mechanics, more involved production methods and pipelines), some folks are stepping back and setting their OWN limits and standards in terms of realism/detail/resolution. I think it's quite possible to have really good art (and really compelling games) without getting too bent about having an incredible level of detail and realism--and fortunately, that's an area where indies can be particularly strong (by definition: because of their "indie -pendence").