One one hand I agree with you. On the other hand, looking at how far movie/tv FX has come, like
http://nerdist.com/amazing-game-of-thrones-battle-of-the-bas... - I'm not so sure.
10 years ago, the state of the art was something like Nvidia 8800 gtx - it looks like the recently launched 1080 is a handwavy 4-10x in terms of performance[b]. ~10x the RAM, but not bandwidth etc. Having recently(ish) upgraded from early 2000s system to an i7 with an AMD R9 -- I would anecdotally claim that we've come quite a long ways in ~10 years. Even if part of that is "just" making 2k-4k gaming a reality.
I think it is a little bit like optimization of performance. Small changes in aliasing, changes in resolution, refresh rate -- they all add up to move us closer to "the real". And I think one shouldn't ignore the work done on the modelling, skeleton, animation and physics side either. It all helps make artificial worlds feel "more real".
With all that, I don't really see why "realistic" is such an interesting goal. For simulation (be that virtual tourism, or a driving simulator helping people become better real world drivers) - sure. The tourist want beautiful scenery, the driver wants real physics (and neither would mind getting both).
But for gaming -- chess isn't very realistic, go is rather abstract and tabletop roleplaying games have the best graphics engine - shared with literature - the human imagination.
https://www.game-debate.com/gpu/index.php?gid=1701&gid2=879&...