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Look at all the Pixar animations that people of all ages love, great animations yes but not realistic.

Some forms of media don't need total realism and often in video games it causes the experience to feel more lifeless.

When I play a video game I want some sense of fantasy that draws me into the game and not to sit down, take the controls and look at exactly the same sights as I can see out of my window or walking down the street.

If a video game was made that looked and played exactly like reality think how boring it would be.
Although they already seem to have captuted pat of that in the ultra boring, one of the worst video games of all time, know as, 'The Sims'