Competitive gamers agree with you and have been trying to increase visual clarity for a long time. I remember finding out about picmip back in quake3 and never looking back [0]. In AoE2 there was a mod called 'pussywood' that made the trees smaller so you could see things. People then also started putting borders around tiles and cutting buildings so they didn't block what was behind them [1]. In SC2 some weird settings made invisible units more visible, I think you set everything ultra-low apart from shadows or something. There are hundreds of other examples, if you watch any competitive gamer stream, their game will look different to the default experience you'd get if you installed the game yourself (unless it's a tournament stream, they'll turn all the settings up to max for that 'gen-z' factor).
The problem nowadays is that companies are incentivized to reduce visual clarity by selling super flashy rainbow skins(doesn't apply to Mario Kart, applies to Fortnite).
Visual clarity vastly depends on the game and what sort of playstyle it's going for. For competitive shooters, it matters a lot more to be able to visually detect enemies slightly visible behind corners, eg. Valorant with red outlines on characters. However, regarding Fortnite, having a flashy animated rainbow skin actively makes it easier for other players to spot you, so if they were really incentivized to sell flashy skins they'd make it so you could choose a skin that other players see and a separate skin you see.
The problem nowadays is that companies are incentivized to reduce visual clarity by selling super flashy rainbow skins(doesn't apply to Mario Kart, applies to Fortnite).
[0] https://twitter.com/cabbagebrains/status/1246155602625064961
[1] https://imgur.com/hqRkLh2