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I'd honestly say it was beaten twice. At launch, I feel WipEout 2048 is the best looking game purely because it's native resolution alongside looking stunning. I'll have to dredge up some of my screenshots of that game but it's seriously impressive.

Then it was beaten again a year later by Killzone Mercenary, which is hands down the most technically impressive game I've seen on a handheld. Literally the only thing I can fault about it is some funky textures on rocks on a certain multiplayer map that I can't remember the name of.

Uncharted Golden Abyss was a very good looking game. But the sub-native resolution really hurt it along with some really weird effects like the pixelated fires and stuff like that.