The graphics are fine, not as technically advanced as say something like the Rage engine but full of style and interest! I think most of the nay-sayers are judging it by the fact that every other entry into the series was pushed out after a major development of the hardware was available for players. Going from one of the earliest actual 3D games ever on PC with Daggerfall, to something much richer on PC and the original xbox with Morrowind. Oblivion then came out on the Xbox 360, PS3 and PC....now Skyrim is being built for the SAME platforms. The only one of those three that has changed is the PC of course.
I would say games like Skyrim will be coming closer and closer to maxing out systems like the Xbox 360, I mean I love mine but there is only so much a...what...10 year old system is capable of! You are only as strong as your weakest link in this case.
This is not a knock against consoles, I own most of them and love them. With all that said I think between the style and possibly the SIZE of the game world Skyrim might include (remember we're adding a lot vertically here with mountains!) the game will be much more superior visually in the long run.