it did win most of the graphics of the year award.
yeah it had its flaws, but i could just as easily post pictures of it looking better than 99.9% of games out there now. you can always find images that make it look crappy.
im not saying it looks near the best by todays standards, but in 2008 not many, if any games looked better than it. like i said Uncahrted Drake's Fortune is the only one i can think of.