Case in point:
The top three resolutions for monitors are 1280 x1024, 1024 x 768, and 1680 x 1050.
Yet the most common size for uploading images is the completely useless 800 x 600 which ranks second from last out of 16, as far as resolutions go.
I realize that some people use that for uploading pictures because their connection is pathetically slow, but my feeling is that it has more to do with not letting go of old habits.
There is nothing more frustrating than trying to find decent reference pictures on google images, and all I can find is thumbnail sized pixelated jpegs that look like a 3 year old took them

.
Another issue is that a great many indie developers are coders and not graphic artists. They tend to use largely outdated or underpowered machines because they don't need that for what they do (I know one who swears up and down that his windows 98 machine is all "he'll" ever need, and he's probably right), and fail to realize that most gamers want a healthy portion of eye candy, and could really care less that you managed to get a sweet traffic system running with only a few hundred lines of code.
That's how big companies get away with releasing virtually the same game every six months.
Sweet new graphics + Same tired old concept = Big money, Vanna!
Sad but true, humans like shiny things...
Who wants to play a game with graphics that date from the late 90's on a $1500-$2000 machine?
You can't make games for an Alienware Area 51 x58 with a 6 year old Dell laptop ?(well I suppose you could if you had a better machine to actually test the game on).
That is just the facts.
It's not really fair to limit your prospective audience to your hardware choices, or lack thereof, is it?
It may ruffle a few feathers, with me saying that, but it's true.
There is no reason to use high-poly models just because you can
On the contrary, sir, there is every reason.
Michealangelo's David wasn't made out of limestone. It could have been, but he chose marble.
Why? I imagine because of it's beauty, it's longevity, and because
he could.
All the same reasons I'm making the choice to go with pushed to the limit detail modelling.
Another example closer to the subject would be Shrek. With your line of thinking, beautiful movies like that would never have gotten made, had they said, "Why, when we can just draw it?"......do you see my point?
Advances are made by pushing the envelope, not because you should, but because you
can.
According to the list Ron posted, the most popular specs are Windows xp 32 bit, with duo core intel cpus (with quad core slowly rising), 2 GB ram, with Nvidia DX 10 gpus, and a primary display of 1280 x 1024.
That's who I'm building for. Actually I'm building for those that are a little farther up the chain, but like I said, my game won't be ready for at least 18 months, and by then they will have caught up.
The argument that low poly models are the way to go for games is not exactly true anymore.
If you get no signifigant frame rate loss from high poly, why would you go low and sacrifice the opportunity to make a gorgeous looking game?
I'm not trying to be a jerk here, as I know quite a few of the users on here are of opposing thought on this with me, either by philosophy or necessity.
I hope I've not offended anyone, with my opinions on this.