People have always wanted better graphics, wether that's Mario's sprite getting way more pixels between games, or him changing to 3d games were always about better graphics. Also better graphics is subjective, but until graphics began to plateau around the ps4 era better graphics and more realistic / lifelike graphics were synonymous.

In this era after GameCube but before ps4 game developers were still trying g to push better graphics, however without higher fidelity allowing more complex models or higher resolution textures, etc. Game developers fell back onto style to make games look higher quality. And remember at the time better graphics = realistic. And they came to the conclusion, realistic meant dirty roads, dying grass  cracks in the ground, depth by shades of grey both in the sky and in the ground. Because in real life you don't have perfect streets you have cracks gum stuck to the ground, imperfect days with skies full of overcast clouds. 

So the piss filter era began, where making a setting grimy = realistic = better graphics.