Personally, I'm far more interested in opponent AI, storyline, and escapism than I am in graphics. The gaming industry seems to be allergic to improving things that aren't clearly cinematic (cutscene animations, acting, and similar). The idea that AAA's can't afford to continue pushing graphics isn't much of a concern because graphics have been good enough for the past decade or so.
The problem here is that I think AAA is complaining about graphics cost so they can shift more resources to live services, sequels, and other locked down experiences. I think gaming peaked with the 2000-2013 time period (PS2, XBox, PS3, XBox360). AAA needs to refocus on what that era did right before the Indies eat their lunch. We had such great variety in gaming experiences during that time period with many games encouraging their users to improve the experience for themselves and others. Today it seems like AAA just regurgitates relatively few games designs and IP that worked well in the past -- no risk taking, very few new IP, locked down experiences, and fixation on graphical fidelity.
I hope AAA gaming changes. I don't want to buy a 5090. I can get photorealistic graphics just by walking away from my computer. AAA needs to focus on the non-graphical stuff.