Not that I enjoy shooting your ideas down Killswitch, but I don't think that it would make any impact on gameplay. In fact, I think that the extent of the realism you're suggesting is a total waste.
How would the player know all of this realism is occuring? Say you modeled all of the internals of a gun and the physics behind them. How would that be any different to the player than now? Would they even know the difference? Why not just fake them like we do today and use the processing power for something else?
I think the question that I'm driving at is if it looks real why make it real? The appearence is what matters and if it looks real enough when its fake why go for an authentic implementation that would just suck up massive amounts of processing power that could be better spent on something else?
But to answer your original questions, No the games industry will not start using the kind of "realism" that you are talking about because it just doesn't contribute anything to the gameplay or make for good screenshots for advertisements(Would you be able to tell that a gun has working internals when all you can see is the outside of it). It just wouldn't be a good return on their investment to spend time implementing this stuff. Thats not to say that advances in the level of realism won't happen. They will, just not the kind that you are talking about.
As to whether technology should advance to permit it, why not? I don't seem the harm in trying.
Sorry to spoil another one of your ideas though.
