Until we have (practically) limitless processing power all computer graphics (realtime or pre-rendered) will not be able to achieve photorealism ...

By the end of 2010, a PC using two or three graphics cards hooked up using SLi or Crossfire will probably be close to the quality of pre-rendered movies of 2000 to 2005 at high resolutions (obviously using rasterization); in 2015 a bleeding edge PC will probably be close to the quality of pre-rendered movies of 2005 to 2010 at high resolutions using ray-tracing.

Raytracing only doesn't produce (even nearly) real-life graphics. It would be really hard to do for larger worlds/scenes. However, try spectral rendering, which looks like this:

Some day computers can do renders like that real time, but for now it takes days.

Well, Crysis already has graphics better than several CG Movies from 2000-2005.

If you're playing Crisis at its maximum quality it does appear very similar to pre-rendered movies from 2000/2001 like Final Fantasy: The Spirits Within; there are still areas where it is not quite as nice as those movies though, and it takes an insanely powerful PC to get that close.

Yes, but approach some of those objects and look at them.  A given piece of bark on a tree would take millions of polygons to render properly, but you'd be lucky to get more than one polygon per small section of bark and then some bump mapped texture to (poorly) approximate the detail.

If by real life rendering you  mean to say that it is indistinguishable from real life, then you need this level of detail.  If you mean rendering that is difficult to see the difference in at first glance from a very limited perspective and limited resolution the a much, much lower level of detail is needed.

For the first, it would be far more difficult to render one tree than an entire building with everything in it.

No, there are (relatively)new shader techniques that approximate 3d geometry VERY well with textures, namely Paralax mapping. You will see a lot more use of shaders for things like that.

my bad people 2010 was too early 2020 will have games look like real-life. If people would just take time and make games like crysis then, consoles wont exist anymore. The computer will be in the living room doing everything.

 actually the pc in most homes are inteh living room and it does do over 50% of stuff aroudn the house. and that is a lower powered pc. the high powered ones (like the one i am wanting to build) should be able to render pretty close to what alot of gamers want out of their pc. liek that scene in crysis once i get mine built i should be able to play it at the highest level.

computer gaming is too expensive that's why consoles will always be there

not really, low-medium resoution + very high with a 9600GT or above. Not that high-end of a PC.

Crysis WarHead will be better though due to the optimized engine.