The race for a better visual presentation will be there for years to come. All this uncanny valley talk is nonsense, at least with respect to today's games. Nothing in a game looks so real, in the first place. Second, even when that becomes a legitimate concern, companies will need to develop better technology and simply push through it. Third, the uncanny valley becomes less applicable because the consumer expectations change over time. That is, even if something looks extremely real but has wooden features or performances, people will grow to understand and expect that.
Games are still light years away from mastering a "realistic" visual presentation. I mean, look at a tree in a game versus one in real life. Everything is off. Absolutely everything. From the shading, to the various leaf shapes and sizes, to the slight discolorations, to the bug bites, to the branch formations, to the seed pods, to the little bits of moss and lichen growing on the bark, to the way various breezes cause things to sway, to the ability to change over time and grow, to the resolution in which you see things.
Things can get better - and should get better. Plants really bug me in games because they look like crap, and are often cut-and-paste versions of one another. I hope those start to get a lot of attention in the future.
People thinking that games don't need to look better are insane. People used to say that years ago, and it wasn't true then, either. People also used to say you'd never need bigger hard drives, more RAM, or faster processors. It all just shows a lack of understanding.