The graphics have gotten quite good, although I would've expected to see much better by now, and I think they started stagnating on visuals in the past 5 years (after Crysis) because of the rise of laptops, which are replacing PC's for most people.
But still my main disappointment was with how unrealistic the movements of the characters are. The characters "look" pretty real, but then that idea gets completely ruined by the way they move. It kind of ruins the experience.
Take Skyrim for example, great visuals overall, especially for the environment, but I hate the way the character moves and how it fights. While the visuals make you think you are in 2012, the movements make you think it's still 2003, the year of Morrowind.