Pretty cool. I feel the games will really need to up their narrative, mechanics and facial expressions if this is how games are gonna look, coz they'll stick out as a sore thumb. If ever single item isn't interactable the gamers are gonna feel the disparity of fidelity and gameplay.
Even the way the cars moved in this video looked...floaty. These ultra photorealistic graphics are really cool but I think you nailed it talking about facial expressions, mechanics, and I would add animations in general. It will be even more jarring when everything looks so real.
I agree. As much as I love seeing technical advancements, I'd be more impressed with more immersive games as a whole. For example: being able to access every building in a city or object interactions that have more dimensions than "I press a button and every atm in this world spits out money". Object have more than one way to interact with them and it would be cool if you could, for instance, navigate said atm's menu, it declining your card, paying out money, etc.