The act of actually producing the story and campaign isn't any harder than it was in the SNES days. The big time vampire is, like you said, wow'ing the gamers with high-end graphics they don't even notice in a highly immersive game unless they stop playing and look around.
Gamers will accept lower quality graphics if the story is good, well thought out, and immersive. Unfortunately, most gamers will accept lower quality stories if the graphics are flashy. It's MUCH cheaper to just write a good story but being creative is hard work, it's easier to just hire a couple dozen game developers to compensate for story writing on par with that of an 8 year old.