Audio logs aren't there to replace cutscenes, they are there to replace text logs. In the past, you would find a paragraph or so of text here or there which gave you some lore to flesh out the world. The problem with this is that it takes you out of the game and makes you read. Audio logs are used to deliver the same background info but by having things be aural instead of visual, it doesn't stop you from playing the game.
While they aren't the most elegant solution, they are a lot better than text logs. As long as the writing is good and there aren't too many of them, I don't have a problem with them.
As for the realism concern, I find it hard to believe that someone who is an avid player of video games has such a problem with suspension of disbelief. It isn't even far-fetched to assume that people would use something like this, even if they aren't contextualized like something like Dead Space.
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