Anybody here can tell you that Killzone 2 will not look like the E3 05 trailer, because it is impossible, regardless of what Sony claims. You dont have to do more than just look at the amount of AA and AF to tell that thing will never run in realtime. They can come pretty close, but alot of the stuff there, just like the motorstorm trailer is impossible for even last generation PS3 games.
I agree that they need to show of some power, they need something that looks better than GoW. Thats easier said then done however...
Another problem with Killzone2 is that it needs to look so close to the E3 05 trailer, that casuals cannot see the difference. If it doesnt, people are going to be mad...