Actually it is literally 100 times more impressive thn Muramasa in just about every possible technical aspect. Polygons, animations, lighting, textures, shaders, literally everything. Your bias is extremly strong in this one.
Graphics are strictily about visual technical aspects of the game. What you are referring to are aesthetics, which are subjective, pointless to debate about, and are not what this thread is about.
Graphics means "visuals", incorporating both technology and aesthetics.
All the tech in the world is irrelevant if the end result isn't appealing, like that top image. It's all about the end product, which is why Muramasa looks better, and why Metroid Prime 3 bests most PS3/360 games visually.