The thing about pics too is that the ones I've seen of Dark Souls as well look bad, and they don't represent the game well. It's like the person who took the photos lacks the ability to choose good shots, or you just need to play the game in motion.
Also that pic that Soriku posted does the graphics too much justice...when you see it in motion it looks even worse. Also that looks like a higher resolution than the console versions. The way it looks on PS3 is much worse. The other areas with water are okay, it's just mainly when you cross that river. It's just a stiff floating texture that breaks at the bends of the river.
But anyway, there will be some changes. The little things like the armor glow might be missing, but hopefully it was just the area that the network test was based in. It was really a drab/grey area, while Firelink Shrine in the original Dark Souls has a very bluish sky above so that is what calls for that effect.
I may be wrong but I heard they've reworked the lighting engine, so maybe we have yet to see the expanse of the new engine. From what I've seen of the final boss fight in the network test, it does look really good.