I'm going to go out on a limb and say that this isn't even that bad, even if it is the final specifications of the gpu. Modern gaming consoles are working on what basically equates to an underclocked 7800 card from 5 years ago and still push out games that look pretty good. Sure, they don't stack up against high end GPUs like the 680 or 7970, but they still look alright. Try running today's games on a 7800 on PC and it would look a far cry worse than what you see from consoles. Just take a look at Youtube vids of people playing Skyrim on a 7800GTX, it's not a pretty site...
Basically what I'm saying is that it's a lot more difficult to compare apples to apples on gaming performance from PC to console games because, more often than not, the consoles are way more optimized and will run more fluidly than an 'equivalently' powered gaming PC.
I wouldn't say they look "good" they are pretty much running the games with every graphical option turned off at low resolution and struggling to maintain 30FPS... The problem with consoles is that if developers want to sell a cross platform game then they must cater to the lowest common denominator. So the PC's on the high end aren't pushed to their full potential because the consoles are holding back games.