I don't really know why game developers tend to chase realism in the first place. Yes, it looks nice, but what's the point? I don't play games because the graphics look nice, and no matter how close they'll come, it'll never match the real thing. At first glance, that Paris room looks real, indeed. And then you start noticing the little things. The complete absence of dust, how samey all the chests look (not even the slightest variation in textures) and things like that. It's absolutely great for a virtual tour...but for games I don't see much of a plus. Even the realistic looking games need aesthetics and a certain visual style to be catching (same for movies, who can struggle with this as well).
Stylized games, on the other hand, don't suffer from this. It's much easier to pick a certain color palette or style to give the game some unique identity. The irony is that because they don't try to pass on as realism, it gets much more realistic. The reason is, as mentioned, that uncanny valley feeling of the realistic shooters.
Don't starve begs to differ. Besides...as far as I've heard, silent hill 2 got much WORSE when it got an HD release. The fog, which was originally in the game for hardware reasons, gave the game that scary feeling. Without it (or much less? Haven't played that remake), the game lost what made it interesting.
It's hard to generalize, but I have this same thing with horror movies. No matter how realistic they attempt to make things with computer graphics, it's just not the same as some "cheap effect" horror things(I'm not talking about jumpscares here).