I think I have to disagree here. Why is that as it should be? This is a game after all, and a stylized one at that. Making characters look worse under some conditions in the pursuit of realism is not the best course in my opinion.
Your photo reference is also a really good example of what many have a problem with currently. Those kinds of shadows make sense in that scene with it being indoors and under harsh directly overhead lights. But those same kinds of shadows are often cast on some character faces during standard daytime lighting, which isn't realistic or appealing.