More like using photogrammetry in the worst way possible.
They are not removing any lighting information.
Reflections and shadows are baked in.
Scanned real world assets are less useful if artists cannot make them into something new. Artists can alter, combine, reuse, and edit polygons, there’s no great tools for editing point clouds unless you want to turn everything into a sculptable mesh.
The file size for 3d point clouds are huge. Do you really expect players to download a 100 GB game that’s the size of maybe a single football field at most? Unique detail is great, but data needs storage.
Unless you are going to just use polygons for everything but the actual graphics, you’d have to rebuild everything from the ground up, animation, facial animation, collision, physics, lighting, shadows, etc.