Unity can do far better graphics than KSP has e.g. https://unity3d.com/pages/adam. The fact that there are numerous mods which vastly improve the graphics of KSP is pretty good evidence of this!
Where Unity can be blamed for KSP problems is the constant stutters due to GC - Unity uses an ancient garbage collector. Hopefully that's going to get better soon - apparently there was some licensing problem keeping Unity on an ancient version of Mono, now that MS own Xamarin that's probably not a problem.