Two things jump out at me:
First, Steam has been an incredible boon to indie games, at least in terms of exposure. Yeah, Greenlight has its problems, but name an indie success story and chances are you'll find it on Steam. When you buy a Humble Bundle (which is how I'll probably end up owning Revolution 60 someday), they give you Steam codes along with direct downloads. But here's Wu, acting like Steam is made up of nothing but misogynist CoD bros. The audience she wants is already there; she's just underestimated their indifference to her product, and to Greenlight in general. EDIT: And it got greenlit. Ok. So the audience was there.
Second, she's talking a lot about story vs. graphics, or story vs. different kind of story. I think that might be the key here. When Wu and her pals say we need games that "aren't fun," they mean we need games that aren't power fantasies with predictable happy (or edgy) endings. Frankly, I agree. I like games where the protagonist is vulnerable and outmatched (like, say, 50% of the survival horror genre), and games where the ending is ambiguous or even flat-out bad (like 80% of the survival horror genre). But those games are still fun. Hell, Papers Please, as depressing and deliberately ugly as it is, is still fun because it keeps the player engaged - stamp more passports, turn away more refugees, save more money for your starving family, and try to do a little better each time you play. She ignores the issue of gameplay almost entirely. The only way to make a game "not fun" is to break the gameplay in some way. Fuck up the controls, leave in bugs, make it unfair or unwinnable or just plan boring. A game that teaches you something, or just makes you feel like shit, can still succeed as a game. The issue is, most of the ones that have tried have failed.
Revolution 60 doesn't work because (if you go by Smutley's review) it's just doing the same thing over and over, with cutscenes in between. The gameplay is made for 15-minute sessions on the subway, but the story is a better fit for the sort of game that you sit down and give your full attention to. It's like trying to insert an epic story into Candy Crush; the two just don't mix.