I really agree that cinematic isn't a good thing for video games. Most of the time it detracts from gameplay and interactivity. A good example of cinematic quality not interfering with the game is the second Riddick game. It doesn't interfere with any gameplay. No action that you wish you could be a part of takes place during cinematics. They're used for not much more than introducing characters and telling you where to go, but it does that amazingly.
Mass Effect, on the other hand, bleh. I don't dare try bullshit like Heavy Rain or MGS4.
I was just playing Mafia 2, and they constantly interrupt you short cutscenes during missions. It's annoying! It just brings me out of the moment. And the story isn't very good anyway...
"Cinematic" is just a trendy word they slap on the game nowadays, whether or not the game actually is cinematic. Like "cover systems" which all games need to have these days.
Face it, it just a symptom of the fact that games are made for casual gamers nowadays, i.e. to sell as many units as possible and not for the hardcore gamer. Games are made to be easier, more linear and less complex.
But then again, just because a game is "cinematic" doesn´t make it into a bad game necessarily.