I would look at some of the tech demos for Unreal Engine 5 and its capabilities. We’re at the point now where the engine itself, with sufficient art assets, can look photorealistic more or less out of the box.
Where this is still hardest- and likely always will be- is in faces, because our brains are so thoroughly wired to spot micro-expressions and subtle facial and body language as social animals.
That said, for a game like Doom or Path of Exile, sure, I think we’re way past the point of diminishing returns. But for games where you’re actually experiencing a story and interested in the relationships and characters involved? Things like Death Stranding, RDR, Cyberpunk 2077, or more recently BG3? All of those same nuances of expression can definitely add to the experience- it’s the difference between a mediocre actor and a good or great one.
Came here to say this. The new player experience is an awesome upgrade in terms of getting people into the world and narrative, but you’re still thrown into an ocean of systems and content without a map. If you’re not following a guide or piecing things together from the wiki it’s very easy to get totally overwhelmed.