Greg Kasavin, an executive editor at GameSpot, has posted an article about why, in his opinion, 3D graphics still hasn't surpassed 2D game art. According to the author, the "problem with 3D graphics in games...is that they're unedited. You can often view the action from any angle, and frames of animation are typically never skipped. In a way, then, I think the cinematic power of gaming almost took a step back with the transition from 2D to 3D. 2D game characters are displayed precisely how the artist chooses to display them to you. There is no extraneous frame of animation to be found. 3D game characters, meanwhile, are yours to control, so you may rotate them and view them from whichever unflattering angle you like."
Read the full article for a detailed view of the author's opinion.