It really doesn't. It just really doesn't. The water is perhaps better in C1, but in every other area it's consistently beaten - the DX10 effects in Crysis were mostly gimmicks that didn't change the visuals in any serious way, so lack of DX11 just means it doesn't look as good as it could, rather than looking worse than the original. However the game itself simply looks better, supports newer technologies, and can actually run much harder than the ingame settings would trick you into believing. If you go grab the third party config tool and turn everything to "high", you'll have your game that nobody can max for a few generations.
Certainly, the game plays worse - I played crysis 1 for the gameplay, but I played crysis 2 for the graphics - but technically, and visually? It's a bloody masterpiece.
technically you are wrong, in crysis 1 all of the texture resolutions are twice the size as the ones in crysis 2 thats #1. #2 the bigest thing dx10 allows for more polygons to be rendered on screen than on dx9 which allows for more stuff to happen on screen and still have smooth gameplay #3 they removed the prone position WTF #4 the biggest gripe is the fact they advertized it to have improved graphics, started all the hype with their cryengine demo showing alot of features that was supposed to be in crysis 2 (http://www.youtube.com/watch?v=1Kvl31g77Z8) that video is showcasing what crysis 2 should have looked like on pc on the release date!!! **** CRYTEK and its last game i will buy from them.