Yes and No, its has more advanced rendering options but the PS2 can draw more. 
Yes although I suspect we are about to start seeing a shift away from photo-realistic game engines to more stylised ones, see 13, latest Zelda etc. As Photo realistic gfx is very hard to make and requires allot of resources (both code & art) while a stylised render is allot easier and gives your game a more unique look to it.
That and the first first person shooter that gets properally photo realistic is likely to be banned on the grounds that it will be far to graphic and violent.
danielB
Yes although I suspect we are about to start seeing a shift away from photo-realistic game engines to more stylised ones, see 13, latest Zelda etc. As Photo realistic gfx is very hard to make and requires allot of resources (both code & art) while a stylised render is allot easier and gives your game a more unique look to it.
That and the first first person shooter that gets properally photo realistic is likely to be banned on the grounds that it will be far to graphic and violent.
danielB
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