Physics engines and graphics engines take a lot of resources. Games that invest enough resources to develop their own highly detailed physics/graphics engines are almost by definition AAA. So what you’re suggesting is that AAA games should spend less time/money on the thing that makes them a AAA game.
It’s okay that AAA games exist, because there is still room in the market for games like Factorio, which has experienced a long and successful life.
It’s okay that AAA games exist, because there is still room in the market for games like Factorio, which has experienced a long and successful life.