You're right, it looks just as good as the rest of console gaming (PS3, 360) so far. So why is this newsworthy? Where does it say in that trailer that the game will even run at native 1080p? All I saw in that trailer was grainy Youtube compression of graphics that isn't anything new on relatively weak consoles.
Maybe if there's an uncompressed version of that trailer out there, we might be able to make better judgments.