There is only one company I let get away with cut scenes and that is Blizzard. Everything else, especially first person games, have absolutely no reason to do so. It's not interactive story-telling nor does it make anything feel any bigger as if you could interact during it.
Most of what Blizzard is doing in WoW in terms of cut scenes seems influenced by Final Fantasy 11 where cut scenes were very well done for furthering story line... shame the game play was set to Ultra-Insane difficulty for most of that game, while I did get to the end levels, it's not a game I think anybody could ever call easy. Story telling doesn't have to be interactive in games, the game play has to be interactive, actually I hate it when you get things like Mankar Cameron's speeches in Oblivion, since every time you get to a certain trigger and he starts talking, if you are in a fight or you accidentally talk to somebody else as it starts, you miss the whole section and either have to reload or continue with that part entirely missed. That said, I really don't think cut scenes are the way forward for First Person games either, however they can work extremely well for many third person games.