(OFC the only thing i can comment on now are these pictures on the PR site.)
Well... i expected MUCH more, i know some offline and online worlds (not SL) in which avatars and their clothes look WAY better than that - almost life like.
The graphic in itself is pretty good, and will probably be at least as good after the upgrade.
Why it might look better in SL is probably because there are way more designers and "implementors", while the designers here first have to think about balancing (not drop too many black coats for instance) and as the number of people is limited, creature and landscape redesign takes precendence.
It would be interesting if mob clothes were droppable/craftable (thor* clothes, the vu7 ragged umbranoid OJs, the NPC and mob (for instance vampire) clothes on RT). The arctic clothes looked cool, just too bad they're (L) and wears out in 5 uses.