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Because it's a long way from a point cloud to a 3d model with reasonable polycount that deforms well in animation?Also, considering environments, the real world is mostly comprised of boring empty landscapes that wouldn't support gameplay well.
there is a game being made that's using it for environments which look actually photorealistic, but I didn't bookmark it and I cant remember what its called.but I do have this NSFW link http://www.youtube.com/watch?v=TBZxDMfL44QSo pretty sure your entirely wrong.