I agree completely, certainly as far as CRPG is concerned. The old school stimulated imagination while the new school leaves less and less to it.
Graphics changed this genre, IMO. At first it was all good. Graphics were new and cool and only added to the quality of the experience. But as those capabilities improved, commitment to graphics increased, the result of which leaves less and less to the player's imagination.
I agree insofar that graphics = technology are in a way the main factor in games nowadays, not the gameplay as such, extremely put (see my posts above).
In fact, the element of imagination began to decrease with the switch from text adventures to graphical adventures.
Nowadays, the graphical part is so heavy that it puts down everything else because of the sheer costs. Games need to look good to sell, nowadays, that's why all other elements are most likely to be cut financially - or at least reduced - than the graphical/graphics part.
What I also notice (which disturbs me a bit), is that graphics-heavy games make gamers more and more passive concerning the use of imagination and solving problems. Imho. Graphics-intensive games become more and more like interactive films, which just leaves the need for imagination out. People become more passive in that respect.
To follow this thought means imho that this will lead to younger generations which become more and more passive. Even with TV. That might be a reason why - at least here - fewer and fewer people go to P&P role playing sassions. They tend to want to rather consume and stay passive than to become active.
In a discussion I mentioned several times from the RPC someone used a word which is very new and very difficult to translate. Imagine the word "fun" as a verb first. Kind of "making fun". Then, imagine this verb as a reflexive verb, making the "consumer" passive. It would read "he is being be-funned", so to say. Yes, I think this is the closest way to translate it. "Being be-funned".
What I mean is that newer generations seem to tend to want to be be-funned rather than becoming active in something. With a TV, it's entirely passive. In gaming, it depends. The imagination becomes entirely passive, but on the oher hand people like modders still are active. So it depends on what element you select.