Another recent example and I played them both within weeks of each other was Half Life 2 VR and Half Life Alyx.
I'll get this out of the way first, I love them both and I'm not sure which one I like more.
But Half Life 2 is again very sparse with fine details in the environment compared to Alyx. Alyx has like 10× the amount of stuff going on in that department.
All and all I think games are advancing and I'm not sold on diminishing returns entirely. But I also agree with your post above my original post about RT and things kind of wasting resources now vs the more thought out visual tricks of before.
I think that's actually a bad and good example simply because Half Life Alyx is built around showing off details and interactions in VR.
It's kinda the whole point of it.
Now if they make a Half Life 3 and it has those, you've got something.
But in general that sort of stuff has been on the decline for over a decade
Nobody is saying that games now can't match or surpass those levels of details, it's just that they don't unless that is the whole point of it or it's part of a game mechanic and can be rather static in a photo realistic world with indestructible/immoveable items everywhere.
But it looks pretty right?
Kojima didn't have to have Ice Cubes melt if you knocked them out of the glass and so forth.
And devs were pushing that stuff back then
But now devs don't have to put that attention to detail in their games that not everyone will notice as long as it looks realistic and nobody attempts to touch it.
But for every Half Life Alyx, you have 50 games with the interactivity of a PSX title.
And that's what I mean.
And I don't think diminishing returns is a thing.
I just think the tools are in the wrong hands