All graphics are just picture files. As you move through a game, those files have to be constantly loaded and unloaded. Small files take less processing power to load and unload but, due to their size, also lack detail. Larger files are harder to load and unload but have more detail.
From a pure user side perspective, faster computers can load and unload larger files more easily so you get better graphics. There is quite a lot more to it than that on the back side.
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