True. But there are tons of 'retro/ cartoony' games around. I just don't think they have big mainstream appeal nowadays.

None of those games are retro. 

Shovel Knight, Yooka-Laylee, Crash Bandicoot N' Sane Trilogy and Super Mario Maker are retro-style games. 

I agree and that's why I'm really excited for Project Octopath Traveller. Also, I wish that Bomberman R, Sonic Mania and Ultra Street Fighter II sell good. 

How is Yooka-Laylee retro but knack and R&C not?

Because Yooka-Laylee is a spiritual successor to Banjo-Kazooie... 

R & C is a franchise that has received many sequels since its inception. Banjo-Kazooie is practically dead, as is the collect-a-thon platformer. 

Knack is just a terrible beat 'em up game, not sure what's particularly retro about it... 

But they're all 3rd person action-platformers. They're a similar type of game and I don't see how one simply being from a franchise that hasn't had a game in a while makes it 'retro'. 

Even if you do view it that way, just swap retro for cartoony and the point still stands. There are plenty of both cartoony and retro games (arguably too many retro games). So asking for more is silly.

Eventually the chase for realism will end and stylistic games will be in much higher demand. We're already seeing it to an extent. So I think we need more stylized games, not necessarily cartoony.

Knack isn't a platformer and neither is R & C. Yooka-Laylee panders to a franchise from the '90s, that's what makes it retro. 

Checking the games I've played on ps4 by trophy listing it seems cartoony is well represented:

Trials Fusion, Fez, Skylanders swap force, Lego dimensions, Terarria, Bound, Windlands, The last guardian, I expect you to die, Eagle flight, Vev: Vivo ex Viva, Space Rift, Hypervoid, Thumper, Tethered, Minecraft, The tomorrow children, Rez Infinite, Wayward sky, Virginia, Plants vs Zomies GW2, No Man's sky, Ratchet and Clank, Abzu, Tropico 5, Table top racing, Trackmania Turbo, Nom Nom Galaxy, Broken Age, The book of unwrittent tales 2, Doki Doki Universe, Super meat boy, Tearaway unfolded, Grow home, Lara Croft and the temple of Osiris, Journey, The unfinished swan, Toren, Grim Fangdango remastered, Apotheon, LBP 3, Never Alone, Steamworld Dig, The binding of Isaac, Dust: An Elysian tale, Spelunky, Hohokum, Oddworld New 'n Tasty, Entwined, Pixeljunk Shooter Ultimate, Trine 2, Transistor, Child of light, Dynasty warriors 8, Knack, Dead nation Apocalypse, Resogun, Flower.

Actually realistic games are by far in the minority.

You don't play AAA games for originality, that time has past. AAA games are to cater to the largest demographic possible and as such can only take very small risks. Ratchet and Clank sold pretty well, yet there's nothing original about it, it's a like for like remake. Meanwhile the Sly Cooper reboot sorta bombed. I would love more 3D platformers, bring Jak and Daxter back, Kameo, Blinx, Spyro, Prince of Persia. But put them in VR or make them couch co-op!

Have you played Knack or Ratchet and Clank? They're both absolutely platformers.

Yeah, it panders to that franchise by way of the type of game it is. Which is a third person action platformer.