I'm always amazed at how beautiful the textures can be in a game until you look at the player's or NPC hair - I groaned when i saw that screenshot originally - as the hair stood out as low quality compared to the stunning scenery - even with alpha I can't see it looking good - still there's plenty of time for a stylist to turn up before the release date
Hair is one of those things that is notoriously hard to make look natural in 3D. It's long, it's thin, it's lightweight, there are thousands of them on most humanoids. There are hundreds, if not thousands of preferences on how they should and shouldn't look. It changes in the wind, in the rain, in the water, while running, walking, on and on and on.
People get really annoyed with hair, but if you knew how much of a PITA it was, you'd be willing to turn a blind eye to it.
It could be improved, but it's never going to look as good as the other stuff you see in the environment.