I'm assuming the intended meaning is that this was the first time the approach led to "realistic" sound?

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.