Yep. Most mass-market space operas are guilty of this. Despite having knowledge and resources to fly to other planets, humans in them still have to shoot kinetic bullets at animals.

However, stories, in order to be entertaining (at least for the mainstream public), have to depict a protagonist (or a group thereof) who are changing because of conflict, and the conflict has to be winnable, resolvable -- it must "allow" the protagonist to use his wit, perseverance, luck and whatever else to win.

Now imagine a "more realistic" setting where humans went through a singularity (and, possibly, coexist with AIs). If the singularity was friendly, then this is an utopia which, by definition, has no conflict. If the singularity was unfriendly, humans are either already disassembled for atoms, or soon will be -- and they have no chance to win against the AI because the capability gap is too big. Neither branch has much story potential.

This applies to game design as well -- enemies in a game built around a conflict have to be "repeatedly winnable", otherwise the game would become an exercise in frustration.

(I think there is some story / game potential in the early FOOM phase where humans still have a chance to shut it down, but it is limited. A realistic AI has no need to produce hordes of humanoid or monstrous robots vulnerable to bullets to serve as enemies, and it has no need to monologue when the hero is about to flip the switch. Plus the entire conflict is likely to be very brief.)