You say global illumination is the holy Gail for gaming well isn't that pretty much what ray tracing is? I don't see that much faking going off. Once we get full ray tracing games will be much cheaper to make and faking it will just not look as good and take longer to produce.
Ray tracing just traces where the light will hit objects as seen from your perspective. It's a very old technique that we once would have said produced amazing visuals, but today our eyes seem to be much more refined when it comes to computer imagery. We would say ray tracing looks fake now. GI on the other hand while similar in that were still tracing light, goes on to work out what the light hit, so for instance if a lit ray hits a red ball, the rays that bounce off that ball will carry with them the colour of the ball and any texture it has will affect how the light bounces. with every extra bounce you get an overall diffused lighting that's using the entire scene to affect everything else in the scene, unlike ray tracing which is just dealing with what you're seeing as the viewer. GI looks very realistic because that's exactly how real light/sky works in the real world. Its just far more intensive to work out GI than simple ray tracing.
Pretty much all 3D games today fake it too. From the texturing to the lighting to the rendering. The engines have just got better at faking it so they don't have to do huge amounts of calculations in real-time when you can predict what will happen with simple algorithms and tricks. fogging, tessellation, pre baking the lighting, bump and normal mapping and so on. To then drop that and move to real-time, i mean when the work has already been done. Well I can't see it personally, although in the pro graphics market that's exactly what's happening so maybe that will filter down to gaming one day.