The water looks pretty crappy, but I never played Monster Hunter for the graphics. The gameplay stands out on it's own. Looking good is only a mild distraction. I actually rather don't care about the look of the scenery, the actual Monsters are what look awesome. The animation and fluidity of them are so full of win.
Compared to the PSP it looks better, but it should anyway, Consoles are stronger than Handhelds 







