I'm quite impressed with games on my Gamecube, so the Wii looks completely fine to me. I also bought Paradroid for the VC which has about the most pared-down graphics you'd care to see...still fun!
They only become an issue for me if they interfere with gameplay, i.e. you cannot tell what the heck you're looking at, so in that regard modern != better because if you have flash graphics but cannot tell where you're supposed to go; what you're supposed to do/are able to do then they really don't matter, do they? Likewise if they look great but outstrip the hardware such that the game struggles to run properly, they're clearly a liability.
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