Tbh I'v played kameo and it didn't look any better than PC games I have seen running on my friends GF6800, regardless of the texture detail or the technology used. The fact is the game art is just plain stupid and not alot more can be said
The fact is Consoles are more effecient than windows PC's, but PC's have more brute force at their disposal, thus PC's, sooner or later, get better graphics.
Anyway, flame bait aside, as MS have said, distance based LOD, instanceing and procedural geometry/ textures are going to be used more heavily in future games in order to maximise scene complexity, of course PC's may use this too, if it is faster than just putting more stuff in memory, but when since have PC's and Consoles been in a graphics competition with each other?
If the majority of people switched platform because one is percieved to be more powerfull than the other, consoles would be dead already. Peoples main interest is in the type of experience the games offer, graphics and physics are a part of that, but it more or less comes down to the type of game the different platforms incourage or can support and how that game is played on each platform.
While graphics are often at the centre of any PC Vs Console debate, they are actually quite insignificant in the grand scheme of things. PC's serve a different market and purpose to consoles so compareing them in some sort of attempt to work out which is generally better is futile. People are going to claim thats not what they are doing, but it's blatantly obvious that they are, I think this passed far from a genuine technical comparison a while ago.
Btw have I said that PGR also looked shit when I played it?
*Watches small amount of reputation get smaller*