"Ray Tracing" has always been an overhyped or misunderstood technology, at least in my experience. Because of the impressive lighting effects it's famous for producing, people view it as some "holy grail" of superior computer graphics technology that we just need to optimize a bit for use in games.
As Carmack described, those highly realistic ray traced renders come at a price: billions of ray calculations. You don't get all that pixel-perfect refraction, etc. for free (and probably never will - at least not with ray tracing.) He also explains that for most people, this (e.g. pixel perfect refraction) really doesn't matter, when rasterization techniques exist that achieve extremely high quality approximations at a fraction of the computational cost.
Conversely though, ray tracing and related concepts (ray casting) are not at all without value. Many modern video games today actually use a sort of hybrid rasterization / ray casting approach. Macrostructure objects are rasterized the normal way, while smaller high resolution detail patterns (like a brick wall, or stones in the ground) are "added" to surfaces via per-pixel displacement mapping, which is ray casting at its core. This is one of the few cases where you can take advantage of the "log2" efficiency Carmack mentioned -- in a highly specialized implementation without a huge time constant.