Well, I believe the main problem is the tendency to take a one-size-fits-all approach to video games. Even movies are able to comfortably support a wide range of experiences, from plot-heavy action movies to introspective character studies and just about everything in between. Since games are even better able to incorporate the audience into the experience, it seems absurd to me to expect there to be one "right" way to make them.

Here's what I've said before about claims that a medium is inherently good at doing only one type of thing: http://spectrecollie.com/archives/2009/07/the-plays-the-thing

And player agency vs. player-controlled narrative:
http://spectrecollie.com/archives/2007/09/pro-choice

And a little more recently, treating video game stories as a collaboration between developer & audience:
http://www.gamasutra.com/view/feature/6276/closing_the_loop_fostering_.php

In short, using an interactive system to develop or to learn more about a character can be just as satisfying as using an interactive system to define a character. I really enjoyed Skyrim, which put all of its effort into letting you define your character; and I really enjoyed Half-Life 2 and Portal 2, which put all of their effort into exploring a world with a predefined character.