It looks okay, but there's still a lot of room for improvement. For example, Jet Set Radio does a horrible job on character's faces, yet simple things such as background and non-complex object look good.
The problem I have with a lot of 3d titles versus 2d titles is not the graphics, but rather the perspective angles. A lot of game developers think that because they have this 3d technology, they need to take you on a visual roller-coaster ride and show you every viewpoint of your environment before you get motion sickness and lose the game. The best example I can think of for this would be Sonic Adventure for the Dreamcast. Now the game looked great when it came out (still does IMO), however, the gameplay was almost nonexistant. The first time I played it I remember oogling over the loop-de-loops and all the fancy effects, but then I realized all I was really doing was moving forward, and I beat the level with minimal effort.
I think the main problem is that game developers get the latest hardware and make a game taking advantage of it, and are so impressed with the graphics they've made, that they somehow think that everyone cares that they are using the latest in 3d technology, and they force feed it to everyone.