We've been in the uncanny valley for a while already, and will continue to be for a long time.
It doesn't have to apply to every game, though. Some developers have gotten around it, while others have fallen into the trap. I think the most important part to it -- more important by far than the character models themselves -- is the quality of facial animation. Back on the PS2, for instance: God of War 2, otherwise a graphical powerhouse, had atrocious facial animation. Look at Kratos' wife 7 minutes into this video:
She looks like a corpse whose face is being grotesquely stretched around by some invisible puppeteer. This is textbook uncanny valley, and it didn't take near-photorealistic character models for it to happen. On the other hand, here's a scene from FF7: Crisis Core on the PSP, with similar-quality character models but much better facial animation. The creepiness completely disappears.
The uncanny valley is going to remain a potential problem for as long as CG animation is done using the methods we've got today. But it's always going to be avoidable by dev teams with the talent and willpower to do it.
