It does have better graphics vs a similarly powerful PC (IE a PC that was high end a few years ago, maybe an 8800GT with a 2.66 core 2 duo or something). If you put Crysis on normal settings and Killzone 2 runs at its only settings then KZ2 looks better.
If you have a beastly PC (I just made one lately with a 295 Nvidia card, i7, 12GB RAM ect) and can run everything in Crysis and Crysis Warhead at max settings then Crysis just blows KZ2 and every other game I've ever played away. The faces aren't perfect, but the environments are as close to photo realistic as I've ever seen. It is just an amazing graphical masterpiece in so many ways.
That said KZ2 competes favorably with most PC games even on high settings and beats every other console game pretty handily (particularly given that it maintains the high fidelity with far more going on then other more limited games like Halo 3 and GOW2. Having those graphics with 32 people per multilayer map is just amazing. Graphics are 2 parts, the first part is the screen shot test (how good does a still frame look) and the 2nd part is maintaining high quality even with high quantity onscreen (no slowdown and high fidelity with huge multiplayer matches or gigantic COD4 like single player fire fights with 1 army vs another which KZ2 also has.)
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