I've always had issues with this argument.
Realistic graphics are to stylized graphics as pre-victorian art is to modern art (or dance pre-Isadora Duncan to post). Capturing what is can be as artful and as effective any interpretive art. Take photography as an example: a single shot could raise a thousand emotions. Endless debate. Internal conflict. It's not just simply devoid of artistic value or lacking in vision as some have said here - it's simply an avenue the creator felt best for the given context in their game. Realism wouldn't perhaps be the best idea for a game wbout a fox space pilot. But for an alien shooter with intentions of dramatic tone and atmosphere - oh, hell yeah, give me realism. It's a much more effective artistic direction.
