There is a huge problem with graphics, but it has little to nothing to do with story. The main problem is all the work it takes to develop. It doesn't just cost a lot of money, but a heck of a lot of time. RPGs are already a lot of work, and with how much longer they are, yeah making them with top quality graphics and presentation is a pain. And, as someone mentioned, graphics play a huuuuuge part in attracting mainstream gamers these days, which is where the sales are. Square-Enix themselves have stated that they MUST make their main Final Fantasy titles with state of the art graphics because that's what is expected of the Final Fantasy name.
--
http://gamercards.exophase.com/54552.png