I pretty much agree with the OP, except:
Lack of health bars.
Having blood splash on the edges of the screen is not anymore realistic or immersive than a simple health bar. Let me just see how much damage I can take before dying.
Health bars are obnoxious and annoying IMO. Modern computers with oodles of processing power can surely find a better and more interesting solution to this archaic and awkward mechanic. That being said, a bloodied screen is not the ideal solution.
Sidequestitis
I think a pile of sidequests is totally fine, as long as the sidequests themselves are interesting. Admittedly they rarely are though.
I also agree with:
Trailers that don't show any gameplay.
When I am interested in a game, nothing is more annoying than watching the trailer and still not having much of an idea what a game actually is. They all seem to be effectively movie-trailers. What a waste of my time.
What about excessive Camera flare?
Ah, brings back fond memories of Serious Sam (Great game, overkill camera flare effect). My eye is not a camera
Some of my own:
Numbers everywhere, for everythingYou hit an ememy and a gigantic 10,000 appears above them and floats upwards. You shoot them with some sort of machine gun and lots of little 20's bounce off of them. It seems arbitary and awkward to me.
MMO's seem to be the biggest offender, as it seems that increasing an integer is enough to make people feel powerful.
Traditional RPG mechanics, and tradition in generalYour health is an integer and one-hitpoint-means-a-ok, you walk around as an animated lookup table subtracting 2d5 + str (because computers use dice) to an enemies HP property (Also why do so many games still shorten strength to "str" still? I have a HD screen, there is plenty of room for the few extra characters needed to spell the full word. It seems like it is done because "thats how it is done"). You kindly wait your turn for the enemy to attack you.
It all strikes me as harshly mechanical, and mechanically simple. Neither immersive nor interesting.
Fantasy/Sci-fi GenocideBeing encouraged to murder absolutely everything that moves. Particularly bad in the games that require you to do this in order to advance (else the game becomes too hard later on). I would like to stress that this is mostly an argument against games that do this excessively, as combat is a perfectly valid gameplay mechanic.
On graphics:
Ambient Occlusion is not quite so bad but distracting nontheless. The game makes objects pop out more by adding a black 'glow' around their edges. It's more complicated than that but that's the effect I usually perceive from it.
This is mostly due to the technical implementation of real time Ambient Occlusion, producing only a very rough result (And I agree with you here). AO that is baked into the scene often significantly enhances a scenes lighting and doesnt do that harsh black outline effect.
Low resolution bump-maps and excessive specular highlightsBecause not everything is made out of moulded plastic.