Sure in some cases it could be fun like in sports games but other then that i really don’t see it working because you interact with games in a different way than you do with movies. That’s a whole different ball game tho because you have real people/actors interacting with a fantasy world. Even then in most cases it still looks off and weird. Games however is a different medium to movies you can’t compare the two really in that way.
They are both form of media that try to immerse the user.
And from a technical standpoint, every nerd dream of real time graphic that looks as real as real life, it is just a matter of being impressed by how much graphic have progressed throught the years.
It is not just eyecandy, it is a mix of many factors to finally see photorealistic graphic.
Of course it doesn't work with every game, that's why we have some many genres, game developers and publishers, having some photorealistic games is not gonna cut the legs of games with a different artstyle.
I mean for fuck sake today the most succesful games are stuff with shitty art design like fortnite, minecraft and roblox, just to prove that silly\unrealistic art design is not going anywhere and there is space for everything.