Yep, it's a byproduct of the "bit wars" in the gaming culture of the '80s and '90s where each successive console generation had much more of a visual grqphical upgrade without sacrificing too much in other technical aspects like framerate/performance. Nowadays if you want that kind of upgrade you're better off making a big investment in a beefy gaming rig because consoles have a realistic price point to consider, and even then we're getting to a point of diminishing returns when it comes to the real noticeable graphical differences. Even back in the '80s/'90s the most powerful consoles of the time (such as the Neo Geo) were prohibitively expensive for most people. Either way, the most lauded games of the past few years have been the ones that put the biggest focus on aspects like engaging gameplay and/or immersive story and setting. One of the strongest candidates for this year's Game of the Year could probably run on a potato and was basically poker with some interesting twists: essentially the opposite of a big studio AAA game. Baldur's Gate 3 showed studios that gamers are looking for an actual complete game for their $60, and indie hits such as the aforementioned Balatro are showing then that you can make games look and play great without all the super realistic graphics or immense budget if you have that solid gameplay, story/setting and art style. Call of Duty Black Ops 48393 with the only real "innovation" being more realistic sun glare on your rifle is just asking for failure.

I think we landed in a situation where some people don't understand the different between graphical style and graphical quality. You can have high quality graphics that are still very simplistic. The important part is that they serve their purpose for the title you're making. Obviously some games benefit from more realistic graphics, like TLoU Part 2 depicted in the thumbnail & briefly mentioned. The graphics help convey a lot of what the game tries to tell you. You can see the brutality of the world they are forced to live in through the realistic depiction of gore. But you can also see the raw emotion, the trauma on the character's faces, which tells you how the reality of this world truly looks like. But there's plenty of games with VERY simplistic graphic styles that are still high quality. CrossCode was one of the surprise hits for me a couple years ago and became one of my favorite RPGs, probably only topped by the old SNES title Terranigma. They both have simple yet beautiful graphics that serve them just as well as the realistic graphics of TLoU. Especially the suits / publishers will make this mistake since they are very detached from the actual gaming community and just look at numbers instead, getting trapped in various fallacies and then wonder why things don't go as well as they calculated.