Video games are not good examples of interactive art - even ones like Bioshock. It’s really just multimedia: it combines interactive, visual, audio, narrative, and emergent contexts into a single whole. Interactive art, as the term is known today, describes installation-based artworks that receive some form of user participation to create an organic performance/viewing experience. Video games are different because of how the user relates to the art; the user reacts to the actions of the game, whereas with interactive art, the art reacts to the user’s input. No matter what you do, the video game has a predictable outcome as determined by if statements, whereas interactive art is more likely to incorporate algorithmic or generative processes to accomplish its processes. I think it is pretty legitimate to depict video games as a genre of art all its own, these days.
Now, to your question: yes, interactivity is a perfectly legitimate method of creating at. There is no reason why an interactively-controlled installation art work cannot portray a romantic-realist aesthetic, convey a heroic perception of mankind, and demonstrate how man is and should be like.
Video games are even more obvious - almost every video game I’ve ever played puts the player in the situation of being the hero. In the online world, everyone is the hero. Eve Online is a great example of a very Objectivist concept of art - it’s a heroic depiction of human society (space voyaging is commonplace, and the player selects his heroic life through a series of quests, missions, trainings, and developments/customizations), you can become a master of many trades/industries, you glorify and respect the art of contracting, producing, creating, building, and earning, and you are discouraged from using aggressive force, while your right to retaliatory force is respected. Ayn Rand would have loved and approved of Eve Online, which is likely why there’s a large number of Objectivists who play the game, and run a corporation called Taggart Transdimensional (http://eve-history.net/wiki/index.php/Taggart_Transdimensional).
I have a hard time seriously considering interactive art or video games purely utilitarian. Indeed, both are ‘consumed’ by the viewers to some extent (and often, to a great extent), but the fact that games these days require so much mental capacity to play, and not merely reflexes and repetition, informs me of the incredibly complex and difficult thought processes involved in their creation. Many video games these days are very passive in terms of interactivity, and others make great strides to be incredibly in-depth, detailed, and expressive in a number of fields, including but not limited to sound and visual art, storytelling, or emergence. Perhaps games like TRON, Asteroids, and Tetris don’t accomplish these types of tasks, but games like Bioshock, Eve Online, and even Starcraft certainly do.