Ok, people here are talking about diferent things. Graphics, animations and design are totally diferent.
I love amazing graphics, I study graphic design and I love them. But still, gameplay comes first. I played crysis 1 with low settings (my pc couldn't handle it) and still I really enjoyed the game. It was (still is) different from most FPS. I was annoyed with oblivion and even fallout 3 for not having shadows, at least some simple shadowing, but the games are so awesome that I didn't mind about that. Still, graphics can give you amazing inmersion and moments, for example, seen a sunset, a torch projecting shadows all around in a dark cave, the lighting from the fire thrown by a dragon. It's natural to see and feel those things because, those things are real, aren't they?
Design is another thing. It's how things look, what things are, and why they are like that. It depends on the setting of the game. You can't comprare god of war with crysis.. crysis is set in 'real life' so they used many real things, stuff you see every day, like trees, beaches, weapons, etc.. god of war? hehe nothing there exists in real life, that gives you a lot of workspace to design. It's different in everything. They did an impresive job. You can't comprae counter strike and morrowind xP
And 'animation' is something way totally different. It's how things move, interact, and all that stuff. It doesn't have to do anything with the 'grapchis engine'
Crytek created an engine, and then put a game into it. Not the other way. They are still kings in video games engines. They even created their own phisycs, animation and AI engine into it. IT'S A 2007 GAME!
I think skyrim will look impressive in PC, (without the limitations of the consoles) still, I don't think beth will get to a crysis level of detail for many reasons, but mainly, becaouse they don't need to.
IMO, I still want videogames to develop the 'physics engines' that means more interaction and funny stuff