I would have to agree with both of you, although I personally think that a lot of developers spend entirely too much time on graphics but then the gameplay (as well as other areas) suffer greatly. Granted, great graphics can paint a pretty picture for ya but it will only take the game so far.......
Then other developers spend too much time on gameplay and you get the game and realize that you can't really tell the difference between a mushroom and an extra man (lol sorry mario fans just kidding around and using that as an example (and yeah I know that graphics in mario games aren't that bad yet lol but still)........
So then for me, about 68% of the games that I think about buying stay in the store because of little things like that lol