Then you clearly never heard of something called a cap. Dice does not have a huge world in which most of there hardware goes in. If you expect any RPGto look as good as BF3 hand me what your smoking cause its good.
No, I think you're the one that clearly does not get it. I never said that Skyrim would look as good as BF3. I said it would look better than it currently does. There is no arguing that point. At least not intelligently.
If they had designed for current hardware, they could have...
better lighting
better water
better camera/camera effects
better detail
open cities
more populated cities
And other things I'm not thinking of right now. Some of those come from DX11 features, but others just require more processing power than the consoles have to offer. And when I say better detail, I'm not just referring to tessellation. I'm also talking about higher resolution textures, a generally higher polygon count and more objects on the screen at any given time.
All of that adds up to a better looking game, if they had designed for current hardware.