DX 11 tessellation would make it look a thousand times better, yes.
But it can also be done by parallax oclussion mapping.
In fact, I think even just a normal map could look better if it was more detailed.
In any case, though, the stone floor seems to be the most major flaw I can find in the picture.
What about the paper thin wolf hide on the floor to the left?
I noticed that too. That's one thing that DOESN'T seem to have improved that much over Oblivion, other than that and the floor, though, certainly much better, though the shadows and NPCs are probably the most major improvements. In the end, though, texture and model quality is not all there is to in-game graphics quality. I actually think thw shadows will help the game more than any improvements to the textures, and even those seem to look better than Oblivion, even the flat stone floor texture people are complaining about looks sharper than similar textures in Oblivion to me.
Yeah thats not bad ,it is a shame they had shown until now only human races
I have to agree, admitably, there's apparently one screenshot supposedly depicting a Dunmer, and some are saying there's an elf in the tavern, but we don't see either of them clearly. I want to get a good look at what the other races look like. Now, maybe Bethesda is intentionally holding off on that to make it a surprise, but if they do that and the results turn out to be underwhelming, the dissappointment is only going to be greater the longer they wait.