AGS is mailnly aimed at retro-adventuring, I think. At least, that's what seems to be its reputation. Higher resolution is possible, but not above 640x480, I think. I'm not really sure. But that's fine. Lots of people prefer the low res out of nostalgia, and honestly some of those games have been awesome. Just look at some of the Sierra game remakes (KQ1, KQ3).
I'll bet that there are engines out there that are more suited and more capable of doing modern adventure games, so the choice of engine does mean something. The next question is: how much does the average player know about the different engines, really?
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