Have DICE come out and stated explicitly that this is going to be steampunk WW1 or are they still keeping to the pretence of being historical despite everything?
Did DICE actually ever have a pretense of realism for this game, Battlefield 1?
I don't think it was announced either way, but I think some are assuming because it's a Battlefield title.
For me, I'm not sure if assuming that is right. Just because it's a Battlefield title doesn't mean there's going to be a heavy focus on realism.
The Battlefield video game series went off historical rails long ago, and I don't think the name is inherently associated with history currently.
The fictional events and elements started being really obvious with Battlefield 3, and continued with Battlefield 2142, Battlefield Bad Company, and more. All with different tone.
Did Dice ever state or announce this game was intended to be realistic?
Battlefield Bad Company for example never had a statement either way stating if it was realistic or if it was intended to be not, but from the information given the game was obviously unrealistic. With fantasy weapons, equipment, map settings, character interactions and trailers with action focus and humor, and a fictional plot with no basis. No real realism in any aspect of its tone.
The Battlefield 1 game itself seems to have WW1 flavouring and dressing, aesthetic and tone. But doesn't seem totally committed to realism. It invoke WW1 style, or at least a pop culture impression of WW1, but not a realistic WW1 style. Though some elements like some weapon models have aspects drawn from realistic historic images and weapon designs, so some weapons look realistic, but despite how they appear they might perhaps operate in a more unrealistic manner. As seen with people sprinting with ease with heavy weapons for example, or guns being perhaps more accurate and less lethal then they historically were.
I can imagine historians might not like it if the game imposes or reinforces false assumptions and impressions on the conscious or unconscious of a lot of the public, which might lead to large portions and demographics of the public making false assumptions for how WW1 was fought and other information of that era.