JigenD...
I am not as technical as you but I like Heavenly Sword. I have played some of the Xbox 360 games you mentioned but only on demo booths.
To me, HS looks good because of the animation, and the overall presentation. I also like the flowing hair, dress and of course the legs (yum !). The environment seem alive to me in motion. The only 2 things I can complain for the arena level is the enemies look generic (but then so does every WWII game), and also the blurness that Laa-Yosh highlighted a few posts earlier.
All you have pointed out so far are the technical correctness and sophistication of the rendering engine. I am not sure they are noticeable during gameplay. If they decide to use hi-poly models for everything, the animation and gameplay may suffer (fewer enemies). I'm buying a game, not a poster.
e.g., Does all your highlighted games animate so well ? Do the actions cut over smoothly ?
1. The main character's hair and face look very bad, her hair is all jaggy, and completely unnatrual, her face looks too flat and 'textured'
Her flowing hair makes Nariko stands out. I have seen hair that looks more like dried paintbrush or some sort of veil over the head in the other games you highlighted. I prefer this one. It can be better, yes, but as it stands... it is good enough for me.
2. Lots of low resolution textures, the shields, the objects, the armor of the enemies, and everything overall. If this game were on the scale of Oblivion it'd be acceptable, but all the shots have only shown a single arena, which would allow you to texture pretty much everything beyond the point of seeing texels.
I don't understand.
Are you comparing Oblivions in a large area with HS in a small area ? You should compare apples with apples. There are outdoor environments in HS too.
Assuming Oblivion in a closed area, how many enemies are on screen at the same time, and how many of those objects react with your movements ? How natural is the animation ?
3. Low polygon models, the helmets of the enemies for example, made out of just a couple polygons, looks horrible.
4. Shadows look like a texel shadow, very blotchy, looks bad to me, especially when you have shadow and then flare right next up to one another.
5. The Soul Calibur esque weapon 'beams' look really bad, they're not made of enough polygons and really shouldn't be in the game at all (they look bad in general, and a better effect could be done with higher levels of motion blurring.]
Actually these are superficial to me. I don't even see them until you point them out. Similarly, it seems that I can see other good things about HS that makes it beautiful, but you cannot.
Show me something that emits the feel of HS and then show me they do these things you highlighted better. It's all about balance. I think HS did the right thing (so far).
EDIT: Now that I think about it, the arena level also switches camera view based on the moves, and cut over to scripted sequences to continue the story very quickly but smoothly (e.g., In the middle of the fight, the mini-boss asked his minions to volunteer themselves to join the fight). All these also give a cinematic feel to the game.