If you want to be generous, spidey 2 is full of small improvements in many areas. But they don't come all together into something trully transformative. The PS5 Remaster of the 1st was more transformative than this.
It's coming to soon after Miles and the remaster, and its probably not insomniac's A team behind it. A lot of things are ugly not even because of power constraint, but poor artistic decisions, or lack of polish, like the gooey water physics for example. Once you already have water physics in place, it takes no extra processing to get speed of movement and viscosity right, just someone taking the time to ajust those knobs...
This could have been a jaw dropper were sony to let it bake for longer, but then we would not be seeing any of it today. A better Spidey two would have meant a worst 2023 PS Showcase. The AAA industry looks indeed very troubled right now...