Yes, in many ways, the Neverwinter Nights engine really was a graphical step backwards from the Infinity engine. This was done so that the came could easily be extended by players. Personally, I think a simple move to a hexagonal grid would have dramatically improved how natural things looked, and something else definitely should have been done with the available terrain heights.
But I believe Lionheart is going to be using an updated version of the Infinity engine.
But I believe Lionheart is going to be using an updated version of the Infinity engine.