Actually there is a huge number of amazing games for me this generation
Demons Souls
Dark Souls
Fable 2-3
Mass Effect 1-2-3
Lost Odyssey
Ni no Kuni
Bravely Default
Dust Elysian Tale
Witcher 1-2
Muramasa
Zelda SS
Clash of Heroes
Heroes of M&M 6 (patch 1.5 with towns)
Bayonetta
Tales of Vesperia
Skyrim
Oblivion
etc etc
are definatly some of my top games of all time
So i would say a huge number of amazing games is still there and came out of this generation
In fact some games like Dark Souls have been more amazing to me than mostly anything in previous generations as far as gameplay goes
The ability for developers to add an incredible amount of detail to scenes in any game. When look at the number of props, textures, rubble, flora, etc during this generation compared to last, there is a huge difference.
The awesome backdrops as well. This generation has been incredible from an artistic point of view.
For me nothing beats FF7-8-9, Legend of Mana etc yet in art and variety
Sure in 3D gaming it has got way better, but 2D is still art king
Games like Dust, Muramasa, Dragons Crown do have amazing art in HD, but are not as detailed or expansive as PS1 FFs
Games i would put up there are Whispered World and Satinav on PC, those are advenures
I think next gen with tech like in Agnes demo will come closer to the detail of 2D games, that will be the turning point for me
Also i have to note that in some case the 3D has ruined art completly, like in FF12-FF13 that are both nothing in artistic detail like FF7-8-9, where every screen was like a new work of art