Resident Evil 5 (Aside from PC, it's the best on the X360 both on performance and graphics)
Alan Wake (Unreleased, but it has the best lighting and atmospheric effects we've seen so far, and probably best foliage as well)
Mass Effect 2 (Best faces and eyes, great character models, nice vistas)
Notable mentions:
Dead or Alive 4 (Launch title, but has high res textures and nice water reflections and great physics, and probably the greatest animations this gen)
Gears of War 1/2 (No explanation needed)
Forza 3 (Great environments, nice physics)
Mass Effect (the first one, it had awesome graphics, but was never acknowledged because of the pop-ins and framerate issues)
Halo 3 (though running at sub-HD, it has amazing lighting, large scale of combat, lots of enemies on screen with great AI, plus split-screen and a stable framerate...)
Assassin's Creed II (exclusives are not the only games that deserve praise..)
Just Cause 2 (same as ACII)