*Warning* -- Extremely passionate personal opinion incoming -- *Warning*
Cutscenes are a crutch modern developers continue to fall back on again __and__ again.
They either are too stupid, or unwilling, or too afraid to let go of the antiquated story telling techniques of the silver screen.
Deus Ex showed us a glimpse into what this new video-game specific type of story-telling could be like over a decade ago. Yet hardly has a game picked up and carried the work that was begun there.
I'm not saying it's going to be easy... at first. It's going to require a paradigm shift in how to tell a story, and hard work to develop the means to implement it. Think of the transition between theater and movies. For a long time movies couldn't get away from stage thinking. It took Orson Welles to shift into organic dialogue, and it took Steven Spielberg to shift away from the "proscenium arch".
YET THESE WERE STEPS NECESSARY FOR THE MEDIUM TO DEVELOP AND MATURE INTO ITS OWN POTENTIAL.
The same shift is required in the movement from movies to video games.
The virtue of video games is interactivity.
An organic narrative developing from the interaction of the player with the world provided him along the lines of a consistent framework of information pathways and many interacting simple game mechanics is necessary to take the next step towards maturing the video game medium towards it's full potentials.