AI vs. Graphics

Ars Technica has an interesting post speculating that certain versions of upcoming games may make sacrifices in graphical quality in favor of improved enemy AI and game interaction. While this is all speculative at this point, it certainly raises an interesting question: with all that supercomputer processing power in modern gaming consoles, is it better to use it for "more immersive" (read: high definition) graphics, or for a more interesting game experience? I'd certainly favor the later, although not to the point where you sacrificed quality and playability for it. In other words, I don't want a game so fuzzy I can't see or tell what I'm doing - GTA: Libery City Stories, I'm looking in your direction!