Okay, so I was being hyperbolic and simplistic (I was on my iPhone :\), but the gist of my point was that I'm more inclined to agree with Shane on this. Obviously, if you can do a scene in game and convey it well enough, it's going to be just as engaging, if not more so, than a cutscene ever can be (Half-Life 2, and Assassin's Creed to an extent, come to mind). The problem is, like Amy was saying, there's certain concessions you have to make in this that can be a huge detriment to the game; as much as I'm totally gay for Valve, I have no connection whatsoever to Gordon Freeman, and as a character, he's as forgettable to me as Master Chief, or GTA Guy, or any other faceless avatar in a game. Having a connection to Gordon's not the point in Half-Life, obviously, but as someone who cares about how characters are established, be they NPCs or the player character, I'd personally rather someone do a cutscene that takes me out of the action than just have me there in a scene, feeling disconnected in a completely different way. Then again, I think this all kinda taps into the big problem, being that most story writers and designers in the gaming industry are talentless hacks. :|
Sorry again about the shitty post earlier; we cool now?