Many people do find that older games were more engaging despite the simple graphics and technology. This may be because developers of older games often focused on innovative gameplay and clever design that encouraged players to think strategically or dive deep into the story. Games of the time had fewer technical options, but this pushed developers to come up with creative solutions.
The games in the past couldn't rely on pretty pictures to sell their games, they had to actually be fun, and have something engaging enough to keep people playing. And telling their friends. To sell more games.
The last 15 years or so they relied on pretty pictures and game play has been pushed aside to work on visuals so that the product can be released this decade. In AAA games anyway, Indie are like the old days still. For most part, they don't have the money to use the engines that explode development time. So at least their games, while not looking amazing, come out a lot faster... in some cases.
Consoles probably lead to this in a way, as easier to release a new version of an old game with updated graphics than to start from scratch. Stifles creativity. PS3 games became PS4 games and some also became PS5 games... (looks at Skyrim & TLOU). Graphics might look better but game is still the same.