Metro09: Don't get me wrong, despite playing the Gold Box series and Fallout back in the day I do find it hard to return to an extremely antiquated level after playing modern releases. And while I'm not pushing Borderlands as an example of what an RPG should be in terms of gameplay, I do think its graphics are a good example of striking a middle ground.
They are stylized and interesting without being insanely demanding system-wise. I think you really nailed something here with regards to graphics. The push with graphics always seems to be for sharper, flashier, more photo-realistic graphics, but this doesn't necessarily make for
good graphics, especially several years down the road. On the other hand, stylized graphics that are focused on supporting the overall atmosphere of the game can still look good many years later, even if they weren't on the technical cutting edge even when the game was released. For example, Disciples 2 is an absolutely beautiful game by any standards, despite being nearly 5 years old. Beyond Good and Evil and Psychonauts are two more games with fairly stylized graphics that weren't cutting edge even when released, but which still stand up incredibly well today (and manage to make the characters in them incredibly alive and expressive despite/because of the non-photorealistic, stylized graphics). Game designers need to remember that graphics technology is simply a tool that can be used to help fulfill the vision they have for a game, it's not something they should try to shoehorn into their game simply because they think people will be attracted to the latest shiny.