A movie camera captures reality. Though people frame reality to look like something it isn't, if you just set up a camera and start filming, what it records is real. What it shows ont he TV is real. Now we can argue that the image doesn't exist as a reality etc. But the way cameras work to record reality to is sample points for photons bouncing off objects, the same way our eyes so when looking at a real scene rather than a projection of a captured real scene. When CG's can produce in the same quality a virtual world with the same movement of photns and a virtual camera that records photon samples to show those measurements as dots that make up an image, then we're creating a rendering of a world without faking it, but creating images just how it is in the real world. If that makes sense. Fur is lots of thin flexible cylinders that reflect light. Where at the moment we draw hair in games by 2D textures on planes, in the future when we can instead render fur as millions of thin flexible cylinders reflecting light, we're no longer faking the rendering of hair, but simulating it. If that makes sense.
Of course, this renders critical philosophical questions. If the world is created based on the same laws as this world, does the world ACTUALLY get created? When you switch off the console are you destroying a world and all it's inhabitants? Will game characters have a soul, and will a virtual crime against virtual people actually be as morally wrong as it is in the real world against real people?
I think I ought to get in early. I'll create a legal firm to represent virtual computer characters. All the mushrooms Mario stomps on deserve legal representation! They've rights too, ya know!