personally, I don't mind. the framerate could use some improvement, that's my one complaint. The low res textures I can live with since the art direction is so solid.
people are so conditioned to focus on technical aspects of graphics, like a blurry texture -- That you're not seeing the really strong aspects of the game's visuals. Namely, the movement of the game. Not just the movement of the players and enemies, mind you, but the movement of the world as well. I've never seen windy shrubbery and trees as cool as this in a game. Note some abilities and magic cause the trees and grass to blow around! With how great the world moves in mind, I feel this game looks better than skyrim in every regard, the animation is obvious, since skyrim has notoriously bad animation, but I think DD rivals/surpasses it in how good the environments look. DD wasn't my GOTY 2012 for nothing.
Not enough can be said about the design and animation of this game. The enemies always move great, but when the game is at its strongest -- When harpies are swooping down and ramming your party, or when a gryphon is wreaking havoc -- There's honestly nothing that compares. I don't care about the textures, the impact from this design and direction and animation is unmatched by any game, you can't get that level of impact from a higher res texture or whatever the latest technology is. This comes from skilled designers and artisans and animators. DD is fucking beast.