I've seen some comments around "Gamebryo engine v1.1" and the HD Youtube vids I've seen don't necessarily refute that. Granted, it appears that most of the videos are being recorded on ye ol' XBox, but there is visible object fade, visible texture mipmaps exacerbated by billinear filtering, and some question around character animation. I expect the first two issues to be configurable on the PC platform, just as it was for the Fallout 3 series and Oblivion.
Still, given what I've seen, I'm not against it. As a general rule, the engine "worked" as it was. The weak points were physics and draw distance. I'm not convinced they've solved either, to be honest, but here's hoping
TO be sure, I'm going to enjoy Skyrim every bit as much as I enjoyed Oblivion and the Fallout 3's. Sure, there are a lot of things that can be said for weaknesses in the gameplay, physics, and the like. Nevertheless, I found the worlds quite enjoyable as I am very forgiving of open-world sandboxes. Some people will say the content was too repetitive, but I was quite happy to go find all the little side quests, go digging through the tunnels and caves and ruins, and go looking for random typically-worthless loot in order to occasionally find a location that was astonishing, or an item that was truly rare.