XBox360/PS3 is the current brick wall. Until the 2 consoles get updated with new hardware, we'll be stuck at seeing those types of gfx.
He meant brick wall in terms of graphical limits

T
hese types of games were developed in the 90s. The market is there if anything it's even bigger now. Those developers got by on their sales then so why not now. It's because everybody judges success and viability by the mega profits gained by hugely expensive franchises on consoles.
Ok that's a good point I suppose, I'd like to see some numbers still - there must be an example of a strong niche market classic game.

Look to an extent the sales figures for PC belie the true story - if a game doesn't sell it's blamed on the decline of PC gaming - whereas other statistics show that in certain fields PC gaming outstrips consoles by magnitudes. Are there any devs still producing these kinds of games? From my consideration it's mainly just the mod community...