[zubspace]

The problem is the demand for dynamic content in AAA games. Large exterior and interior worlds with dynamic lights, day and night cycle, glass and translucent objects, mirrors, water, fog and smoke. Everything should be interactable and destructable. And everything should be easy to setup by artists.

I would say, the closest we can get are workarounds like radiance cascades. But everything else than raytracing is just an ugly workaround which falls apart in dynamic scenarios. And don't forget that baking times and storing those results, leading to massive game sizes, are a huge negative.

Funnily enough raytracing is also just an approximation to the real world, but at least artists and devs can expect it to work everywhere without hacks (in theory).