I think this hooks in quite well to the existing dialogue about movies in particular. Take an action movie. It looks real but is entirely fabricated.

It is indeed something that society has to shift to deal with.

Personally, I'm not sure that it's the photoreal aspect that poses the biggest challenge. I think that we are mentally prepared to handle that as long as it's not out of control (malicious deep-fakes used to personally target and harass people, etc.) I think the biggest challenge has already been identified, namely, passing off fake media as being real. If we know something is fake, we can put a mental filter in place, like a movie. If there is no way to know what is real and what is fake, then our perception reality itself starts to break down. That would be a major new shift, and certainly not one that I think would be positive.