One big issue I never understood is why do we need photorealism in games at all. They seem to benefit card manufacturers and graphic programmers, but other than that I feel it has nothing to do — and in fact may have negative impact on game quality.
A large section of the gaming public sees photo-realistic games as serious, and prefers them for high-budget games. It's a rat race for devs though - its just incredibly expensive to create high quality models, textures, maps. I've been playing Cyberpunk 2077, and while the graphics are great, it's clear they could do more in the visual realm. It doesn't use current gen hardware to the maximum, in every way, because…
For FPS, HL2/Doom3 is probably the last generation that enjoys a huge modding community. Anything above it pushes ordinary modders away. I believe it is still quite possible to make mods for say UE4, but it just took such a long time that the projects never got finished.
In certain way, I so much wish the graphics froze by the year 2005.