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Why the distinction between graphics and art? When people talk about a game having great graphics, that often refers to technical aspects. The number of polygons, fancy graphical effects, etc. These are nice, but what really matters most is the quality of art within whatever medium or engine is being used. In a
text MMO, the medium is the written word. So the writing must be good. In a graphical game, the quality of art must be good, regardless of how advanced the actual graphical engine might be. This is one reason why cartoony style graphics have performed better (on the whole) that games that go for a realistic style. It is a lot harder to get realism
"right" that it is to get stylized, cartoonish, or anime style graphics.