Do Kids Nowadays Care About Graphics?

Short answer with no evidence or even an anecdote: No.

Longer answer with anecdotal evidence:

My 11-year old son is currently playing 1997's Dungeon Keeper and 2000's Nox. I picked up both when Electronic Arts' Origin service had "on the house" games and ever since my Alienware's graphics card bit the dust 5 years ago these are the kinds of games that run best. Objectively, put against the current generation of graphics these two games are terrible to look at, Dungeon Keeper's first-person mode is particularly hard to look at. Everything is smeared, blocky, stretched even with the resolution jacked to 640x480:

Source: Moby Games

Nox fairs slightly better, but the graphics -- if I may drag out an old phrase and utter it once more -- are shit.