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I don't understand all this UE3 hate....yes it doesn't make the most out of 360 hardwere so, whats the problem?It's not like Gears/Mass Effect/Bioshock looks bad....The UE3 may not be the most advanced engine but it helps programmers to make the game developing process faster and cheaper....I'm actually happy that those developers are spending all their time actually developing games rather than a new engine every time. The 360 it's meant to be the most complete and convinient console on the market both for consumers and developers not the most tecnical advanced one (that's the Ps3).
Most game developers have not the time, money or skills to develop an excellent engine, look at what happened to Liar for example.
Resident Evil 5 is also an example of what happens when you the make most of you efforts only to improve the engine (great graphics/linear un-original game).