It is becoming outdated, actually. I personally want the best gaming experience I can get, within reason of course, so to me upgrading essential pieces of hardware is what you have to do.
Yes, you can in fact play whatever game you want, but like you said, you're limiting yourself because of the power of your equipment. If that's how you enjoy playing, gfy, but that's not me, and it doesn't mean I'm wrong either.
I priced out a good gaming pc based on minimum system requirements for Black Ops and it was $1,099.75 + shipping. To build this pc, there's no way I could have put a video card and processor in there for $200 without severely hindering the performance of the pc.
Besides, there are games out there that take a boat load of power to operate like Crysis. When that game first came out most people couldn't afford a pc powerful enough to play it. Now three years later, to meet the minimum requirements for that game is still going to cost you at least $1k. So I think it's safe to say that the technology is improving and the demand for more powerful pcs is ever increasing, it just appears not to be affecting you all that much.