Its not perfect but its crazy that companies moved on from that.
Resident evil remake and even more REzero show such a insane potential for prerendered backgrounds and we are talking about a game from 2002 over 20 years ago.
I hope we can go back to that and with modern tech, it would look insane and run like a dream.
Edit: If you still believe that pre-rendered backgrounds look bad and wouldn't work on modern games here are some more pictures: https://imgur.com/a/SR5RqFB