If this is their definition of "realistic" sound then I'm horrified

That's also not the case. There have been some really accurate physically-modeled instruments for at least 20 years.

Also, aschkually, a violin is on the "easier" end of making it sound realistic. It's one of the "tutorial" models you go through when you start learning about this (resonators + reverb get you 80% there). Much harder to do any plucking sound (guitar, piano), and much much harder to model percussions accurately (cymbals, drums) and in such a way that the sound doesn't come out dry and very evidently synthetic.

Source: I was very invested into this in the 2000s, although as a hobby, not professionally.