This question can only stem from groundless restrictions on what 'game storytelling' should be like. Because games are an active medium, some think all storytelling should integrate player activity.
It's sort of like saying that the need for narration makes movie storytelling bad, because narration is an audio storytelling device used in a visual medium. Sometimes, narration, and cutscenes too, are shortcuts. And I feel these shortcuts are usually built to overcome limitations in the gameplay rather than the storytelling. But it's not necessarily true. Take Goodfellas or Lord of the Rings for example - if you know how to use them, most storytelling tools can be effective.