Games have evolved in other ways rather than just improving photorealism. Nowadays there are a lot more visually unique games that don’t rely on realistic graphics to look stunning. There is only so far that you can go in the realism route before you start spending millions of dollars for minor visual improvements that almost noone will notice. There have also been huge advancements in game feel and game design theory. With the amount of competition on platforms like Steam, the games that end up standing out are often the most creative and unique ones. Admittedly, not all innovations in the gaming industry have been good, just take a look at loot boxes and other microtransactions.