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They are both good and needed to add some variety and you can combine them pretty good.

Uncharted shows how it is done.
Realistic but you can see it is full of colour and stuff.Probably the best example for a combination out of those too.

And there are even FPS Game that work well with an Art Style
Timesplitters for example always was that good cause it wasn't military 0815 realistic.
On the other side something like Battlefield 4 only works with as much as possible realism.They try to simulate a serious Battlefield.

Realism is great for a lot of genres and styles.
But "Art games" have their place too - Zelda,Mario Galaxy,BioInfinite,Journey and co show how insanely good those games can look.
A Journey wouldn't work with a realistic style - It lives through the style and the emotion it generates.

Always depends on the game.