Recent studies show that the smarter the person is, the worse they are at predicting the future. Smart people tend to be more focused and specialized in a narrow field and have a hard time ascertaining unexpected bits of data in their backyard and tend to be shocked when something unexpecting comes their way. I mean look at how shocked all these college graduates were when Donald Trump won in 2016. xD
Also for reference, I remember when Nintendo 64 came out in 1996 and people were saying at that time that graphical improvements to that were nigh impossible and would look photorealistic so I'm not so sure that we are reaching peak graphical fidelity. There's literally always something to improve upon.
Photorealism was never an official thing in the 90's and anyone who made such comments back then was either a fan or a gaming journalist with no real insight. It's only in the last couple of years that photogrammetry has enabled games to look photorealistic, much thanks to powerful tools quch as Quixel Megascans which is world leading in its field. Not to mention real-time ray tracing which didn't become standardized in modern video games until as recent as 2019.
Fact is, although there might not be a limit as to how advanced computer graphics can get, there is a limit to what the human eye can perceive. There comes a point where difference in detail is so utterly tiny that our eyes can simply no longer notice it, and we are reaching that level of detail as of now.
And I disagree with you about the "smart people" criticism. If by college graduates you mean Hollywood actors, overpaid politicians and media journalists - yeah, sure they were definitely shocked when Donald Trump won, but we're not talking specifically about politics here, we're talking about technology which is a far more measureable field.
If I could make a prediciton myself, I'd guess that AI technology in 20 years will enable us "ordinary" people to create our own remakes of our favorite games. Maybe even earlier than that.