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I think another reason why animators (both Western and Eastern) generally avoid realistic character designs is the risk of uncanny valley effect. It has the risk of characters looking creepy and corpse-like, especially if the characters don't move or express themselves realistically despite their appearances. Stylized characters are often more expressive so they don't look as eerie when animated, assuming the animation is decent.
I'd say Monster's artwork is pretty realistic looking without looking creepy though most of the characters are European. Probably about as realistic as you can get without falling into uncanny valley.
It's manga, but 20th Century Boys by the same creator as Monster has pretty realistic looking characters.
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