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The effects are somewhat unexciting at this point, though it may just be the setting they chose to show off. And they may have just not implemented everything yet (just look at the strides Killzone 2 has made over the past ~6 months).

That being said, Kratos' character model is insane! Even the new Nathan Drake doesn't come close.

Compare the screens above to the CGI from Chains of Olympus:



My gosh! Aside from the fire, they're damn close.

And if they are aiming for 1080p/60fps (ignoring that stupid VGTilt rumor, Cory Barlog said they were aiming for this when GoWII was released, and both GoW I/II were 60fps and were at least 480p on the ps2), then this will have some crazy IQ.