Yea there's physics and destructible environments and stuff too. Regardless it's more than "just" graphics, it's basically about enhancing the "realism" of the game. Now personally I don't care about that but a lot of people find it's more immersive to have the game seem more real, and that's fine. I prefer the over-the-top style games, kinda like comparing sitcoms to slasher flicks or something.