I got caught up in a discussion elsewhere about Tales Of Symphonia. Someone pointed out that it's a good game because it's not FMV-laden.
FMVs (full-motion videos, if you didn't know) and other story sequences in games don't usually bother me. I was actually hoping that the shots in the opening montages of Tales Of Symphonia and Baten Kaitos (both GameCube RPGs by Namco) would be shots from FMV scenes later on in the game, but as it turns out, they weren't. You could bring up the point that FMVs can take up a lot of filespace, even with good compression, and the fact that GameCube discs hold only 1.35 GB, but the point that seemed to come up was that it was BETTER because of a lack of FMVs.
I don't think there's anything inherently wrong with FMVs. I think as long as there is some point to having them (story-wise, or epic OMGness) and that it's not disrupting the flow of actual gameplay that they are cool to have around.
If developers are using flashy FMV scenes to practically replace gameplay time or shoddy graphics elsewhere (especially in ads), then that would be when they're ridiculous. But I don't think that you can say that just because a game might have FMVs but doesn't that it's automatically better.
And perhaps I shouldn't use the term FMVs, which to me doesn't include in-game cut-scenes. Take something like Metal Gear Solid 2...I remember one part where after sitting through a long scene, I literally just walked down the hall and into another long scene. Or Nintendo's Custom Robo on the GameCube...there's a sequence near the end where they try to cram in a lot of story, which, quite literally, is just a few characters standing around talking, and there are something like three save points WITHIN that conversation. Or at least at the beginning, middle and end, but the fact that they felt a need to have a save point partway through kind of says something, even if it is welcome - I remember one part in FF VII when I was thinking "let me save already!" - but really...just a scene of standing around? >_< Well, whether it's flashy or just some blabbish exposition, a half-hour of CHECK THIS OUT or BLAH BLAH BLAH where you do nothing but sit there (or just press the button only to advance text), it begins to take away the point of a game being an interactive story, even if everything has to be linear at some level.
With the increasing sizes of media, like the HD-DVD(-ROMs) and Blu-Ray, developers CAN make bigger, longer, flashier movie sequences, but they shouldn't abuse that power to mess up the flow of a game.