I feel like people who talk about graphics fundamentally misunderstand what they themselves crave.
People want things that are nice to look at. Some artstyles require more computation than others, but ultimately all of gaming is art, and all of art is a conjuring trick, much like Cinema, how something is accomplished or how "believable" it looks is secondary to how invested you are in what you are consuming, yanno?
I do however have personal opinions, and my personal opinion is that gaming peaked during the PS2/GameCube/Xbox years. Hardware was just about good enough that pretty much anything developers wanted to make, they could achieve. Nothing looked like real life, sure, but it looked good enough. And the more detail you are throwing at the screen, the more expensive it is to make. So back then we had a lot of mid-budget games. That had resources not available to modern Indie studios to do ambitious things, but were also not these insane investments that had to please every executive under the sun and monetise everything in order to break even.
The perfect balance between niceness and feasibility.