1) Trying to simulate realistic lighting in realtime is a fool's errand - even with every trick we know, lighting can never look completely realistic on today's hardware.
2) There is a certain art to unrealistic lighting. We see reality all the time and it is fairly boring, why not take advantage of the simulation to produce something visually interesting? I recently revamped my lighting for an unrealistic, but stylistic look:
http://i.imgur.com/t1gC4ME.png