Because it's actually fun to play as a sniper, I really find the trees/shrubs distracting. Just a blocky, pixelated mess.
Also, the smoke is just horridly ugly. And there is a lot of it. I'm not sure if DICE is proud of how completely they can obscure the player's view, or if they intentionally do it for gameplay purposes. Very distracting. The fire isn't very convincing either. Seems like it has too much of a "white-ish" color, not enough orange and red. Bleh.
Gameplay-wise, it seems fine so far. I've tried all the classes and they seem to work well, although it looks like the sniper can unlock a mortar stike in the retail, so I can almost guarantee that is going to suck given the offense/defense gameplay. Defenders have to camp, so they'll just rain mortars on the defense ad nausium.
One cool thing is that the offense seems to have the advantage, which I guess is nice for a change. Even a marginally coordinated offense (one squad even) can pretty easily win.
Overall I think the gameplay is decent, but visually the demo is a dissappointment. This is not the way to sell a shooter to 360 fans.
All I can say is that EA/DICE better pray that IW doesn't put vehicles in the next COD game.