A. I might be wrong and humans are that crazy and that technology is the only thing keeping game developers from making a very-close-to-realistic graphics

B. I might be right and below is the case:

The reason why I think games can never be realistic is because it would be more relatable to reality and it would lead to real life practice of what is being depicted.
The human mind has been so aware of reality that if as much as a game character's blinking goes aloof it'll figure it out. So the reason why games would hardly make a sane person violent is because the brain doesn't see it as real but, as a simulation.

If the human brain is convinced to the extent of seeing a game as more of humans acting it and not just some simulation, it might be tempted to choose to see reality as such.

That is the reason why I think some games like fallout still has last gen graphics. And many other games pushing for better experience than more realistic graphics. Near realistic effects but, the characters would still look like game characters.

Why do you think game characters are not made to look real?
Lack of a better platform to handle the details or my reason or something else?

The makers of Uncharted 4's Drake said they could make him look better but, PS would not be able to handle the details

Personally, I just think we don't have the technological capability to achieve such realism in gaming.
Movies are making their way there with digital doubles and recreations of deceased actors, but it's still not 100% convincing. A lot better than what we have in games though because the systems used to render such scenes in film are a lot more capable than the average gaming system or console.

Poorly done attempts at realism can tend to be more disgusting than appealing anyway. The Uncanny Valley might be a good read at this point, if you haven't heard of it.

Technological capabilities are the only real hold back for photorealistic graphics in video games, if your argument was actually the problem then we would have had the same issues with Movies.

Unless a person is mentally challenged the human mind can always distinguish between reality and fiction.

I don't think it's the same with movies.

A movie is a predetermined fiction. In games, one creates the occurrences. One decides to kill or not to kill

We're purely limited by hardware, rendering a realistic 4K scene in Blender with top hardware (i7-8700K + GTX 2080ti) takes 20+ hours and that's with $2000 of equipment, games have to render 30 images per second.

Game industries don't use rigs like that. They use render farms comprising of ridiculous number of cpus and gpus.
But, I understand what you mean, that is a lot. And that's just Blender

@op what you said was thoughtful..

But the difference between ps1 and ps4 barely 20 years difference makes me think otherwise..

Imagine what graphics will look like by 2050

Yea, it scares me though... When it is hard to differentiate between game and movies, I'd get Nintendo I'm too sensitive