Sorry but those are 2 completly different mediums. I watch a movie when i want to watch a movie and play a game when i want to play a game - neither will ever replace the other. There will be mixes - that can be fun (movies where you pick an option and it moves on - or games that are movies with options etc.) - but in the end its something different.

But people probably also said that when the first movies came out regarding books ^^ - and books and movies are probably even more similar since they both arent interactive

Also you do have to realize graphics is always a matter of the time its released in. Back in the days people thought Mario64 looked amazing and immersed into the game. So better graphics dont change much they just make expectations higher. Also there is a big issue - the more realistic graphics get - the more you will actually see the flaws - so a game with stylized comic graphics can be more immsersive than a flawed ultra realistic graphics.

Thats actually an interresting topic "Uncanny Valley":
https://en.wikipedia.org/wiki/Uncanny_valley

(long story short - for example why you have a better emotional reaction to a stylized robot than a robot that is made to be as human as possible)