Braid is one of the best looking games this generation, in my book. It is easier to make a really beautiful game in 2D, but that doesn't mean there aren't some really awesome games in 3D as well.
Awesomely beautuful 3D games this generation:
1. Love
2. Flower
3. Mirror's Edge
4. Darwinia
2/4 of those are Swedish, I guess it really helps if the creators are from the same country, thus having some of the same values when it comes to beauty.
Something I really dislike in modern 3D games is bumpmapping. I find it to be ugly most of the time, and it can really bring down the impression I get from a game. Cases in point would be God of War III and Gears of War (or any game from the Unreal Engine, with one exception). The fact that 2D doesn't do bump mapping really makes it a lot easier for me to enjoy 2D games.
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