I totally agree with your last paragraph except to add: there has actually been some great advances in interaction, but people vote with their playtime, and I think the reality is that the "median gamer" is totally content with WASD + mouse/the typical controller thumbstick movement. In the same way that so many are content that many game mechanics boil down to combat and health bars.

I am personally not content with that and I explore all I can, and am trying to make games that skirt the trends a little bit.

But that stark contrast between visual fidelity but a lack of interactivity has been a pet peeve of mine for a while. You can even do so much more with just mouse and keyboard interactions, but I think it's overshadowed by the much lower risk visual fidelity goals.