It's not there yet. There are games that border on art, and there are games that the individual pieces are art, but there aren't many games that classify as art as a whole. I would say that Bioshock comes close, using the player's interaction as an actual piece of the artwork. Also, Braid comes close with the mechanics being pretty integral to the gameplay.
Games are art, just as pictures, movies, music, and literature all are art. some are brilliant works and some are absolute rubbish.
That's how I see it.
Quality of the piece has little to do with the classification as a form of art.
I agree with you there, too many people blindly compare movies to games and games to movies in some form of elitist artist discussion. But it's mainly "hardcore" game douches who don't believe in movies and think that artistically, games have surpassed movies. I doubt the latter because you wouldn't do certain things in games and you certainly wouldn't do certain things in movies that you can do in the other. They're too different.
I also agree with holk because a lot of games these days are like kindergarten paintings, not really art, but still an expression. Unreal Tournament is one of my favorite game series but I'm not gonna call it a piece of art. Then you have stuff like Bioshock, like holk said, iis really amazing because of the way you can interact with the world around you, and the art style. It's funny that comparing a game to a movie is a pretty honorable thing, but saying a movies watches like a game is kind of a bad thing.
That said, this movie looks like that episode of the X-Files about the virtual world that is sort of real IIRC.
The cinematography looks cool, sorta reminds me of Blade Runner. Who knows, I agree with Nam, no middle ground.