Are video games getting too photorealistic?

Having watched the new Battlefield 3 trailer, I was struck just by how real it looked, mostly in the lighting and sound department.

I’m sure I’m going to buy Battlefield 3, and I’m already in the beta for it, but I was almost a little put off just by the realism present in the graphics, even if the gameplay itself isn’t all that realistic.

So at what point does a game stop being a game and start being a simulator, or when does it become too similar to real life to really enjoy?

Yes, I know BF3’s gameplay is nothing like some other “simulators” like ARMA II or Manhunt, but the graphics look freaking fantastic for a video game.