When FFVII came out, a few friends would come over and we'd play it together. Three of us, passing around the joystick at intervals and making battle decisions for the character that was considered our avatar.
One of their parents asked me how we could play a game so much. I explained that it was the story that kept us interested. The same reason you read a good book. I also explained that for many people of my generation, a good video game means the same as books did for previous generations.
When Aeris was run through by Sephiroth's sword, the room got pretty quite. It changed the mood of our social event. We had vested interests in the characters.
A good game will leave an impression. I would consider that art.
In short, I agree with you. Some games are not art because they don't merit any creativity or real furthering of the industry.
How about a discussion on games that should be considered art, and games that should just be considered an insult to the hobby.
Art: FFVII
Insulting: Mario Party 8
~Anselm~