There are some extremely realistic racing games, mostly on the PC though. Project Cars looks pretty realistic both gameplay wise and graphics wise. Considering it's a crowdfunded indie title that really is an accomplishment. As graphics progress there will probably some kind of junction point where they get so good you can't tell it from real life, and that's when developers will turn to more minimalist and artsy styles like most indie games. If you look at Forza 5 10 years from now, the graphics will look horrible, but games like Don't Starve and Binding of Isaac will stay timeless.