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It's true that most developers try to make their games look as realitic as possible. But even then, there are a lot of approaches to that style.

And more and more game try to push artsy graphics styles.

And really, there is nothing wrong with a realistic graphics style. As long as it fits with the tone and mood of the game, what's the problem?

If you want colors, there are plenty of games, even realitic ones, that have colors. Uncharted being one of them.

Anyway... I don't see what's Miyamoto's problem with this. One could say that there are too many cutsy and cartoony Nintendo games and not enough realistic ones...