To me,....it matters.....to a certain point.
Like, graphics should be an integral part of the design, not jsut something that looks good. I mean it should look good, but not the way that it ABSOLUTELY NEED to be near real, i mean it should have some consistency to it.
Like playing old games really is sometime surprising what graphics can acheive without even the intent to look real. Sometime, it can be jsut to immerses a feel to the player like earthbound with its simplicity, or wind waker with its abundance of green (I just love flash green
).
However, hd graphics is just a technology, it might sounds awesome on paper (lol), but the way it's used can go either way. If you make a game JUST to use hd graphics, I think there;s a problem in the design as it just doesn't feel there was a design purpose other than having good graphics. If you use hd graphics to actually make the design feel more present according to its goal, that's good.
For me, it;s like music, you don;t need ultra precise and complex sounds, but if it helps to express the feel the composer wants, then it;s fine.
In fact, I actually pay more attention to sounds than graphics, but to me, it;s a technology, it's awesome.....if used right when needed