It's exactly what Deneidez said-- shadow maps cost memory. Processing power isn't really the huge problem, the PS3 just doesn't have a lot of space for texture memory and you have to make a cut somewhere.
You can either have beautiful scenery and jagged shadows or cut down on the scenery and have better shadows (but still jagged).
If you do go back and look through most every console game, it's the same (especially on the PS3). Some are better than others but that's because they sacrificed other things. That said, Uncharted 2 is a still a beautiful game.








