It's a fascinating subject, one that I've studied as a computer graphics coding guy, and one that I'm interested in personally. In this example, you can see that it's technically great, with the camera shake and blur being spot on, but the actress is just some grotesque thing.
As we get closer to being able to render everything down to skin pores at 60fps, our game actors are looking more and more like Real Dolls. There's a creepy disconnect, one that as gamers we've put up with for a while but is immediately noticeable to non-gamers. My wife used to point out the horrible unnatural animation in that Max Payne ad every single time it came on.
It's for these reasons that I've moved away from games that strive for photorealism. Probably the most "realistic" game I've played in recent memory is Half-Life 2, and that works because of well-defined art direction and characters that are designed to give the impression of being human rather than look "real".
Man, I'm a wordy bitch.
