I completely agree but I would actually extend this principle even more aggressively. Even if, for whatever reason, we were hard capped technologically at Windows 98, even that space could be fruitfully explored practically without end, creating new genres, new stories, new games.
Fiction writing carries on just fine in books, and music has certainly benefited from new tech and new methods but there would always be music even if that weren't the case, and same with cinema. I would put tabletop games in this category too. Its continued future viability, independent of future tech advancements may be an important factor in settling whether its art.
Full credit to Nintendo for recognizing they had plenty of unused creative space to play in, and choosing to play by different rules.