I disagree strongly with the implication that there isn't already tremendous variety in games.
I think the author is saying that the mechanics of gaming are flawed though. They're almost all centered around stuff like health and ammo, completing objectives, taking damage and dying. That's what most games are. Sure you'll find exceptions, but they're nowhere near the mainstream, and even gamers will shun them for "not being games" like Dear Esther . Also, even the variety that is there might not be what these p…
But I think it's very important to acknowledge that these "problems" with games are not born out of laziness, lack of creativity, or an inability to see outside the cultural in-group. Games boil everything down to easily countable abstractions, because games are, at their heart, nothing but systems of rules. Your health meter is an abstracted version of your physical well-being. Objectives are abstracted goal setting and cause-and-effect. Even if the game doesn't show you these numbers, it is still using them under the hood. What's the alternative? A deep, nuanced simulation? That'd be great, but it's well beyond the scope and means of the vast majority of developers.
Why do so many games include death? Because it's the only universally accepted fail state. It is simply impossible for 99% of games to provide anything more meaningful than that, because doing so involves exponentially more complexity, storytelling, and asset development. The best most can do is just cover the death up with new coat of paint (a la Braid).
Why have a fail state at all? Because the interactive nature of the medium loses a lot of its weight when your choices/actions don't seem to matter, and simulating anything other than simple failure is, once again, exponentially more difficult and expensive.
It is tragic that there is a certain vocal group that rejects alternative types of games like Dear Esther. I won't apologize for them. However, the games that are "mainstream"—and the games that are not—are not selected by some game industry cabal. The easily consumed, easily understood games sell so much more than the niche stuff precisely because more people are interested in that kind of thing.
Although the point of the article is that we need to think of different audiences (which is hard to disagree with), my main takeaway was that society is full of judgmental elitists who love to denigrate things they don't understand. In particular, the author's cousin seems like a very unpleasant person. Although the story of her encounter with Lydia is superficially touching, it's hardly a revelation, and we've all heard these stories before: friend/relative hates video games, finally plays one, is brought to emotional tears, yadda yadda. Finding a good game is roughly as difficult as finding a good book; the culture is not to blame for people's ignorance.
(As an aside, the true tragedy is that the cousin's experience had a lot more to do with her ignorance than with Skyrim its. Avoiding video games for your entire life practically guarantees that you'll be blown away the first time you find one you like, because the game is still "magic" to you. The magic wears off very quickly, however, and after that the meaningful experiences are much more rare. If you continue playing games, you find yourself wanting more than just some scripted dialogue, and that's why games so frequently feature the challenges and spectacles that the author says turn the non-gamers away.)