Anyway. What's really wrong with Skyrim's engine right now is two things.
A. Materials
Skin, metal, leaves, cloth, etc. These things move and reflect light differently. Modern games http://www.arena.net/blog/wp-content/uploads/2011/02/MF_Lineup_Heavy.jpg, http://media.moddb.com/cache/images/engines/1/1/94/thumb_620x2000/Subsurface_Scattering.jpg, http://lostmoya.files.wordpress.com/2008/04/crysis-screenshot-3.jpg, http://unigine.com/devlog/080816-water.jpg, http://i10.photobucket.com/albums/a131/aznpxdd/crysis642008-05-0114-48-55-14.jpg, and even http://vimeo.com/4304024 all look way better than what Skyrim has managed.
B. Lighting
Shadows woo! Except almost every major games since 2008 has had shadows. Since then games have added the ability to have http://vimeo.com/20088266, http://media.moddb.com/images/mods/1/18/17030/SSAO.jpg http://www.youtube.com/watch?v=FqeXuO2AlEE, and much better http://images.anandtech.com/reviews/video/ati/5970/Shadows.jpg. None of which, again, Skyrim appears to match.
Gameplay is more important, no one has to point that out. But that doesn't mean you can't have nice graphics either, it's not a mutually exclusive thing here.
Just to be clear, I'm talking about the engine. Not the art. Is that clear enough? This has nothing to do with the art style, zero, nothing. The second you say anything about how you don't like how it looks, or that's not how Skyrim should look, or anything like that you have proven you didn't understand a thing I said.