Keep in mind that there's nothing that states that photorealism has to be the same old thing that the average homosapien can witness in his or her daily routine or with a few hours sitting on an airplane. The fact that Yet Another Jungle Commando Game can look as realistic as ever doesn't mean that better games can't take a photorealistic rendering approach and make something that is genuinely visually interesting. In a fantasty game, clever use of surreal lighting effects can make a light source be a little less like an exposed light bulb and a little more like an aurora borealis; in a sci-fi game, clothing surface properties can make the world seem just a little different than anything you've ever seen in real life. Even when none of the techniques applied technically reach beyond photorealistic rendering, the result can be so much more than any photo you'll see.

It's really up to the artists to take the capacity for photorealism and run with it, creating something that brings the player out of their reality and into a new one. They've failed if they take photorealism and fill it with parking garages and cubicles and crates and things that people play games to get away from.