> [...] Ray tracing is already starting to be a thing in consumer products, so we're bound to get photorealism at interactive framerates in the next decade or so. No neural networks needed.
Define 'photorealism'. You limit yourself to the rendering aspect and ignore the content/asset problem and thereby economic factors.
This technique is probably one or two orders of magnitude cheaper than generating geometry and shaders that have the required level of detail in any traditional way.
Either by an artist or programmatic/procedural (Someone has to write that code too/set up that node graph in Houdini or the like). Yes, you can also just 3D scan stuff (see Quixel, etc.) but that has limits too.
More specifically for achieving photorealism by 'traditional means': consider scales.
An asset, however produced in finite time, will only hold up to some range of scales. The technique in the paper allows to get as close or far away as you want and everything will still look real. No level of detail work needed, just a few more training data.
Traditionally, if you use textures, you will reach the limit of the texture resolution. Even if you use procedural techniques – not everything is a fractal. A close up of a brick looks very different from a wall of bricks etc. Again, who will write that code?
My guess is rather that we will see a hybrid of more photorealism by traditional means and more 'icing on the cake' by methods like this.