Graphics can improve a hell of a lot more before we achieve true photo-realism.
For starters get rid of the dog shit brown, it's not just about the realism, it's about the interaction with it to. You can have the most realistic looking characters ever but it will all tumble apart if they have lack of characterization, subpar animations, bad interactions with environments, and loads of other problems.
Not only that, but visuals can improve twice, if not thrice, as much as graphics can. Visuals are the aesthetic viewpoints of graphics, like the horror tensions and the atmosphere to the game. Who knows what we can get to achieve true photo-realism?