I think it's very much a quote of its time - I agree with you that the problem is primarily one of medium, and at that time the medium wasn't able to adequately

I think it's very much a quote of its time - I agree with you that the problem is primarily one of medium, and at that time the medium wasn't able to adequately tell complex, compelling stories. The market has definitely evolved now - there's still a demand for great action games where story takes a back-seat to the sheer enjoyment of playing, but there's also demand for games with compelling stories (just look at the backlash Mass Effect 3 had, rightly or wrongly). It's like films, or TV - sometimes you just want to watch big things blow up, other times you want things that make you think.