Perhaps the most disturbing video game ever...

[solarwave]

In some ways, this is a really big question as to what constitutes a graphic item. Such as, why does better graphics of something make it worse?

Perhaps because it makes the world it is portraying more like our world and so closer to our morals. For example in Final Fantasy setting someone on fire isn't the same as it is in our world. In their world it doesn't seem much different from punching someone in the arm, but in ours it it close to torture.

Then again the holocaust is portrayed in film and people get enjoyment from watching those films.

Maybe (going back to the start of the thread) torturing a child in a game isn't immoral, just like shooting someone in a game isn't, but maybe shows an unhealthy interest in torture. Humans naturally fight and kill because they once had to do it to survive, but torture never seems necessary and so there is no reason to have a desire to do it. Perhaps killing in games allows people to express their natural desire to fight another while not actually harming anyway, and so torture in a game would give a way for someone to do that without actually harming a real person if they felt that desire.