It looks beautiful.

This thread is so funny. It went from "Yeah, definitely had a downgrade" to "OMFG".

Arts/Classes are way more complex than they were before O.O HYPE!

Watching the gameplay for some time now. Really looks like just another Xenoblade, which is a good thing.
However the environment looks a bit generic so far. I hope they have something more amazing for later like the Eryth Sea.

The game looks pretty good!
It's the character models and their speech animations that look downgraded... hopefully those are adjusted in the coming months but if not, oh well!
On to Hyrule Warriors!

character models need more work but the game is a powerhouse graphics wise!!

I won't lie but when I saw it on the e3 direct I was WTF happened, but after watching the treehouse and actual gameplay the game looks as good as ever (that music when he was in the field epic). It seems the only reason we thought downgrade was because we never really saw the character models close up before but the environment looks good as it always had.

The character models were a bit peculier in Xenoblade also. This seems the same. And they do still have time to clean up some things before next year.

MASSIVE DOWNGRADE FOR GREAT INJUSTICE

Looks to me like they've got a lot of texture clean-up to do. There are massive differentials in the quality of graphics based on what they showed on Treehouse. I'm not too worried by character models - more important to me is the scenery, which ranges from looking knock-out gorgeous to Wii quality. I presume that a lot of the work they'll be doing in the roughly a year until it releases will be cleaning up the worse textures. The game has excellent draw distance which provides some truly stunning views.