Even if that is the case, I don't see how that changes the argument in anyway, the whole thing is an illusion, I don't think any specific game can be highlighted as more authentic. If Reach does things in real-time it could do before hand to make the actual game ultimately look better, they should. Because the end result is just a game that doesn't look to compete with it's peers on a technical level.
It's not as if the audience have shown any clear preference towards that either. CoD is outselling every shooter by a very large margin, and those games scream inert constantly, to me at least.