Indeed. They got too complex where they shouldn't have, and not complex enough where they should have.
I used to be a real aviation enthusiast but (for instance) Falcon 4 was too much. Realistic it might have been, but I didn't find it fun. On the flip side, there were other games that looked better, were more forgiving and managed to give you much more of a sense of fun.
I remember on some of the games AI wingmen were starting to happen, but they were nuts - they'd be miles off target, crash when taking off/landing, not hit anything etc. More time should have been spent with that than trying to replicate the flight model of a fighter jet (which most of us wouldn't be able to appreciate anyway since we don't get to fly in them!).
I find a lot of console games to be too simplistic (which is fine for a lot of games, don't get me wrong - I'm hooked to skyrim on the PS3) - surely there still has to be a market for the grown up gamer with something that's a mix between simulation and game.