You probably watch movies ( all kind of movies, filmed ones) …
Ask yourself how they compare to real life, and why we need movies to be different from reality.
Somehow it’s a similar issue when representing something in 2D or 3D.
It’s generally an improved version of reality that is needed in order to be interesting.
Is this stylized or realistic ? : Possessed Pumpkins
What about this ? : Secret Saprophyte
Maybe by stylized you’re talking about cartoony style, well, a lot of CG artists work in entertainment and animation and it influences their work. Animation nowadays is also influenced a lot by old cartoons like disney, warner bros, tex avery , and also comics that also have a great deal of simplification and exaggeration in their style .
You might read a bit this topic :
It’s not 100% related to your question but basically it asks if the more realistic the better it is, and what’s the point of simplifying a design. A broad debate, but people have interesting points and arguments, you might pick a few ideas there !