I'm guessing that the graphics don't look great because they are targeting this game at a wide range of PC players.
I grew up a PC gamer and recently decided to buy back into the platform after a stint on the Xbox 360. When I got the Xbox, I reasoned that most big releases were going to be cross-platform, and that the console provided the cheapest way to access those titles. I hoped that the decline in PC gaming (which I lamented) would lead to an increase in the diversity and creativity of games coming out on consoles.
Needless to say, I was disappointed in that regard. Console games, for the most part, are published by large corporations which impose burdensome restrictions on developers and hold a disdainful view of their customer base. Look at the recent MOH release, for example. EA rushed that game to be out before the new COD, and it shows. When confronted with the shortcomings of the game, one EA exec dismissed such concerns, saying that the game was fine for most of the market, and that the only people who don't like it are those who spend "80 to 90 hours a week playing shooters." In short, he is saying that he doesn't care if they put out a bad game so long as they sell millions of copies to unsuspecting casual players. Those players pay their $60 up front, and it doesn't matter whether the continue playing the game. Of course, the highly structured nature of the console gaming market makes this possible.
My hope is that free to play gaming will help spark a renaissance in PC games. Such a business model is, of course, impossible on consoles where Microsoft wants money up front for every game. Indeed, they don't want this business model to succeed because it means that game developers will be forced to put out quality games and to maintain and update them on a regular basis; if gamers have a wide range of free games to play, they are going to play whichever ones are the best and have the best support.
I'm glad to see that Dice hasn't forgotten about the PC market. They have, in the past, continually talked about how they can't just port the console versions of their games over to PC and call it a day the way Activision does. Hopefully this new Battlefield game will get the type of investment it needs to succeed under this business model. And hopefully it will show Activision how important it is to patch your game! Modern Warfare 2 only got patches for the most game-breakingly obvious bugs or imbalances. But there have been several bugs or imbalanced weapons that have never been patched, even though one would think that patching your game is a BASIC necessity in a competitive market.
I'll gladly spend $60 or more on a game over time if it is good. I probably spent about $80 on League of Legends this summer. But I shouldn't have to pay $60 up front just to find out a game isn't good or that I don't like it and never play it again. I'm not some spoiled gamer who wants everything for free; I'll gladly pay for good content and reward developers who show me the respect of putting out a balanced, intelligent game.