this is something that i thought about in-depth a long time ago. its not fun to turn down your graphics settings, and it can easily compromise the experience that the artists worked so hard to evoke
if you ask me, i feel like all games should run smoothly with maximum settings on any computer that costs no more than $500. of course, that couldnt be any further from reality, but the idea of being unable to enjoy a games ideal visuals without building a $1000 computer is absurd to me. not only does it become a matter of some people having to play with massively toned down visuals, but this also bars a population of people from even being capable of playing your game
i feel like if you cant get around requiring such intense hardware, you should be using a more performance-friendly, stylized approach to visuals. not everything has to be hyper-realistic, you can make your game look really charming and save on performance at the same time
in my dreams though, smh
You don't need to think that a game can only be enjoyed at max settings, otherwise no one would be able to enjoy console games. Also, the difference between medium and ultra nowadays is very very far from massively toned down visuals, they still look damn good. I say this as someone with a GTX970 and a 1440p display, in other words, I can't max most recent games.
What you said would just massively hold back graphical settings and cards, there would be no need for a high end card or new expensive options. I love HBAO+ because some SSAO implementations were terrible, but it made my FPS drop so much when I had just a GTX 660. People are already complaining that the CPU and GPU market are stagnant, imagine if there was no reason to improve because that power wouldn't be used.
What you are suggesting would be like "hey guys, rename medium to ultra and call it a day, no point putting some effort in the game, that will just bite in the ass later", which is kinda true even today.