Years ago, movies were a magical and wonderful experience that would take the viewer to a different world.
Now, I often find that watching a movie transports me inside a computer to watch a CGI vision rather than seeing a geat story. No matter how good computer graphics are, they are just there to present the story to the viewer and don't need to be 100% accurate.
This is one reason that I enjoyed The Grand Budapest Hotel so much. It transports you to a magical world where a great story is told. Photo-realistic imagery would've only detracted from this experience.
Take the way he constructed the film’s many shots of trains, on trains, out the windows of trains: "No actual train was used in the production of this film," Seitz says. "They were flat theatrical props that looked like trains."
As an aside, one of my favourite movie scenes is from Spice World (yes, the Spice Girls movie). It's a scene where the Spice bus jumps the gap as Tower Bridge opens and the awful special effects make it much, much more memorable. Realistic CGI would've ruined it.