Disagreeing there.
Firstly, books and movies lack one important thing - interactivity. With a game you can influence the story, which makes game storytelling a lot more engaging. If it has a good story, that is.
Secondly, gameplay cannot make a bleak story suddenly interesting. A good example for that is the already mentioned Kingdoms of Amalur. Good gameplay, but a horrible 08/15 story. If a games story is unimaginative and has tons of logic holes in it no amount of gameplay will make the storytelling of the game good.
That being said, I doubt anyone of the "story" faction wants a cinematic "game" without any gameplay (nevermind that a "cinematic" game and a game with a great storytelling is not the same thing), just as I doubt that the "gameplay" faction wants a game with good gameplay, but no real story.
Personally I would greatly prefer a great story and average gameplay over an average story and great gameplay.