The cool thing is that this gives game-designers an extremely powerful additional tool. You could for example easily go for a more retro-look by training with kodakcolor images ...
And I don't buy the argument that GTA doesn't look more realistic because that's what the designers were going for. If this was a game with a clear "comic appearance" that might be true, however I would argue it looks like it does, because the designers did the maximum that they could achieve with their tools and within a certain budget.