Graceful degradation is cool, but progressive enhancement is where it's really at. The difference is that instead of working around the lack of capabilities, you design simple and robust core system, and then improve around it based on available capabilities.
The proper term isn't graceful degradation, but fault tolerance.
It just describes how many core systems or components can fail before the device itself stops working.
For example, a jet will have multiple redundancies for almost all major systems which allows many of them to fail in the air without causing the plane to crash or force an emergency landing.