Oh yes, I remember those days well.
The cut-scene started to really come to prominence during the original PlayStation days, fueled by amazing cut-scenes found in franchises like Final Fantasy and Metal Gear Solid .
That was when many gamers would "ooh" and "aah" over the latest amazing CGI sequence. I still remember working in an EB when Final Fantasy VIII came out. We were running a promo sequence on the TV that kept showing the dance scene between Squall and Rinoa near the start of the game. We had customers who didn't even know it was a video game. Some would just stand there, agape. It was pretty cool.
These days, though, anything non-interactive in a game seems to be automatically classified as "bad." I keeps seeing people complaining about the length of The Order: 1886 but more specifically, they're whining that there are probably too many cut-scenes. I know gamers who can't even sit through a 30-second scene where they're not pressing buttons; that's how far our attention spans have fallen.
I'm not saying cut-scenes are a universal good but I certainly understand their capability to tell a story. Most people these days apparently don't care. They want to "make their own story" or they quite simply aren't interested in the plot the developers created. They just want to play. I think if The Order had released back in the good ol' days, this backlash over cut-scenes wouldn't exist at all.
Related Game(s): The Order: 1886