Games visuals are riddled with shortcuts and simplification.
You don't think the way the water moves when your characters steps on a puddle, the smoke rises from fires or the damage on the walls are Physics Simulations, do you?!
It's all a variation of a procedural noise such as Perkin Perlin Noise, particle effects, or at best (for example, ocean simulation) some formulas that turn out to look good enough.
(Want to see Physics Simulations in 3D generated worlds, look at Special Effects in Films).
Improving one element of game space visual fidelity - reflections - is nice but it's unclear that it's worth its downsides (more expensive hardware, slower performance) given how everything else is still one big pile of "good enough" shortcuts.