"Because in the real world, I have to write up lists of stuff I have to go to the grocery store to buy. And I have never thought to myself that realism is fun. I go play games to have fun."
Doesn't mean games are going to abandon realistic graphics styles.
I also believe Gabe Newell was referring more to gameplay mimicking real life rather than art style. Makes a lot more sense when you remember that the Half Life games have a realistic art style and pushed limits of what was capable at the time.
Gabe Newell - https://www.gamesradar.com/gabe-newell-says-games-dont-need-...
Detailed assets don't equate good games.