I saw http://www.youtube.com/watch?v=Rl9wuDN4pUA
If you use a poisson remeshing on this and intelligent polygon count reduction, you can have a photorealistic game level just like this.
Anyone created his levels with this?
You’ll never have photorealistic games with this unless you completely ignore the fact that you still have to light the scene. Asset creation isn’t the only factor in creating a scene.
Just imitate the original lights.
You need to move around. As soon as you add interactivity, prebaked lights only go so far.
Baked light work wonders in combination with dynamic lighting.
well it has millions of fireflies in the textures, some items are incomplete missing faces and other areas render like z-fighting geometry…
IT would be more work in patching up all the mistakes than in doing it from scratch by hand.
I think for now game asset creators jobs are still safe 
You seem to have never tried it. I used the output of 123d catch - which is a pointcloud based mesh - successfully in a small game of mine. I am very satisfied with the result.