I don't know about that. I'm finding it harder to be impressed by console graphics lately, maybe because all the current gen platforms and engines have been pushed close to their limits as they are getting older. I mean U3 had some good graphics, and nice facial textures in particular, but they weren't leaps and bounds ahead of the last one in the series, or better enough than anything else on the market to justify a graphics GOTY, at least in my opinion. I thought batman arkham city and gears 3 were contenders for best graphics this year because they had a lot of extra detail and it was obvious that a lot of care and attention had gone into them, but even at that I didn't feel like there had been a huge jump from the previous installment in either series, and so many of the other games out there like COD, battlefield etc were just more of the same graphically.
I havent played everything, but It's hard to think of a game this year that really pushed the envelope in terms of graphics. Maybe they just wanted to give something to U3?
yeah, just no, UC3 is absolutely stunning looking, its not just the textures its the camera movement, the subtle character interaction with the backgrounds etc. how was battlefield more of the same graphically? its an entire new engine.