
Thats pretty detailed for me, and considering they are using the Far Cry engine to it's full extent you should really look more into the game detail before deciding that it doesn't really look that good. The fact is, really, in its area of sales, it's the best looking MMO to date, on par with conan, but i hate the oblivion engine, impressive yes, but it looks too real, i like the final fantasy esque korean mmo styling.
As i read you are really judging this from an FPS point of view, which isn't valid really if you get me. To create such a vast landscape in which thousands players can play on and see basically all of it, does require some tactic under which the graphic engine allows smooth play and a decent degree of quality, i imagine that if you look at more pictures of the landscapes of this game you'd be surprised, the. Anyway Far Cry engine, FPS engine in an MMO, i don't see the downside here.
EDIT: you have to hand it to them, they've done better than any MMO to date.
http://www.tentonhammer.com/node/9070 might be a better example