This is just 2026. Give it a few years and it will become much better. CGI also started embarrassingly bad, peaked, and then went back to bad as studios realised people just don't care that much
Terminator 2 was two years earlier than that. It didn't try to be photorealistic, but it used the available tech in a way that was visually interesting.
Maybe we're waiting for a filmmaker to find the right use for it. Apparently this isn't it.