I really don't think 'realism' means what you think it means at all.
You're kidding yourself if you think there's any sort of 'realism' in the characters of any pretty much any 'epic' action or heroic story of significant length.
Have you noticed that even when characters in fiction are ugly, they're not the same sort of ugly we see in real life? And no, and I'm talking about Mary-Ann-from-Giligans-Island-Pretend-Ugly-But-Really-A-Babe.
I think realism does mean what I think it means. Now go take your Inigo Montoya act and try it on someone else.
I was talking about the devs taking a largely photorealistic approach with the characters, with the apparent goal of making them look as convincingly lifelike as possible (something the devs seem to improve at incrementally with each new game they make - ignoring DA:I issues with hairstyles). I feel that for it to really work, you also need to include a wide range of types (ugly/average/pretty) similar to what you would find in the real world. Why? Because if every single person is beautiful, then I just don't find it particularly convincing or representative of what I would actually find in the real world.
And don't be purposely obtuse or try to obfuscate matters by trying to claim that JUST because a piece of fiction falls into the epic/heroic category, one can't try to inject some realism or believability into the characters, the characters' appearances, or the fictional universe itself. Why does hard sci-fi exist? It exists because some people appreciate reading stories in which the science and technology being described are at least somewhat plausible. There is usually some basis in actual scientific principles/laws and research into real-word physics, biology, chemistry, computing, etc. In other words, the fiction in hard sci-fi is as grounded in reality as is humanly possible for the purpose of selling the story and making it convincing.
For any piece of fiction to work (and I don't care what genre it is), you have to be willing to accept the reality of the universe that has been presented to you. It has to be convincing on some level and feel "real" enough to the reader that they can suspend their disbelief. I work on manuscripts almost every day (unless I get lucky and get a couple of days off in a row), so I read a lot of completely crappy fiction novels. When one author writes dialogue in a stilted manner and the characters do not even remotely sound like real people (or act like real people), I tend to notice it right off the bat (and then I will proceed to mercilessly mock the author's terrible writing MST3K-style to entertain myself while I am forced to format the novel).
This also applies to more visual forms of fiction like games or movies or graphic novels or what-have-you. In the case of a game, I find that it makes it easier for me to believe and to accept the fictional universe that I am presented with IF the characters and character designs are, yes, realistic (and having good dialogue and writing doesn't hurt either). When I say realistic here, I will reiterate that I mean the characters should be as lifelike/photorealistic as possible (if that's the devs are trying for), along with them being designed in such a way that makes sense in the context of the character's description - particularly for companions and major NPCs (per my Zaeed example, I want my hardcore mercenary to look like a hardcore mercenary - not like he stepped out of an Abercrombie & Fitch catalogue).
That's what helps sell it for me - just like having a mixture of ugly/average/pretty people helps to sell a fictional world as being more believable than one in which everyone is pretty (like I said way up above in my second paragraph). And yes, I am well aware of the dichotomy between Hollywood "ugliness" and actual ugliness. And I ask you this: so...freaking...what? I prefer as much verisimilitude as I can get. Just because Hollywood does one thing, it doesn't mean that the game devs should necessarily follow suit.
Maybe you should watch the Twilight Zone episode called "Number 12 Looks Just Like You," which is about a world in which individuality is frowned upon and is ultimately rooted out and eradicated. Everyone is forced to become a clone (in essence) when they hit their teenage years, choosing from one of several standard body models - all because "ugliness" contributes to breeding hatred among mankind. From the wiki:
The motive of the Transformation is social harmony. According to Professor Sig, a psychologist with the Transformation service, "Years before, wiser men than I . . . saw that physical unattractiveness was one of the factors that made men hate, so they charged the finest scientific minds with the task of eliminating ugliness in mankind."
The protagonist who tries to rebel and be different (simply because she wants to be herself) ends up being crushed and is ultimately made to conform against her will. She ends up as a clone, just like her mother and everyone else. I wouldn't really want to be in a world like that, because while absolutely everyone was beautiful, they were also completely vapid and boring (along with being juiced to the gills on the equivalent of happy pills). This story was, obviously, a shot at Hollywood and the beauty standards that female actresses were subjected to. Funny thing, though, it still applies today in Hollywood - and in games, apparently.