No one would want that.  Get shot hurts a lot or so I heard.

Well one way we're very limited at the moment is with our TV's. You just don't have a very panoramic view whith a small (or sometimes rather large) screen in front of you. 3D VR goggles would be absolutely epic. You could look in three dimentions and see depth and everything.

This won't happen for a long time though, because there's no super computer on this planet that can render that. No ways. Then of course such a thing has to become mass-market which means the technology must be cheap enough for the masses.

EDIT: But would we're very close to photo-realism. Many games look like photo-realistic in still images already. The dev costs are holding us back though, but that's sure to change.

Photorealism in 120FPS with 4 player splitscreen in an open world.

exactly.

I would.

There going to switch to something different, maybe Virtual Reality. But then graphics will likely suck and it'll start over by trying to achieve photorealism on Virutal Reality.

Photorealism is boring. Besides, those kind of games would have humongously monstrous budgets and be highly inviable, unless some revolutionary new way to create ultra-high-end visuals is conceived.

Next, we make it better than real!

And even if that would be possible, it would still mean automatically created, soulless textures and meshes. 

It is not the higher resolution, the depth of field, or the more complex water reflection that requires extra work, but the small details that are now required to be designed, like papers on a desk, pattern of a cloth, realistic facial structures, etc. 

Even if they would make some procedural generator that would fill the blank holes, it would still be monotone.

CGI (cutscenes in Halo Wars for example) > real life IMO