You're kidding me right?
Wanted to ask the same thing.
That picture high above the city in the jeux-france shots...
Again - I don't care about it if its this ugly.
And fixing the lighting, well, which of the other games had realtime global illumination again with fluidly transitioning day-night cycles?
Lair has that? They've pretty much keep it out of the screenshots and movies then. And again, I don't care about the technology if it looks bad.
I haven't heard about them for any of the PS3 games at least, but maybe I missed something. In the context of this engine, I don't think it's a simple matter of 'fixing' the lighting and shaders. You're the expert, but I'd even question your 'making better textures' as a feasible option at this point, when they have to conform to these requirements.
If they've built a lighting engine that does not allow them to create good looking images, then what's the point in it??
I wish they'd hire you, so you'd get a chance to actually prove you could 'fix' their game.
We've already worked on two nextgen games, both already mentioned here on B3D as well - and in both cases they've contacted us... Textures for characters in one case and complete characters in the other.