My biggest issue with the visuals is not graphical fidelity, it's the fact that the game has no sense of place and atmosphere anymore.
Removing the lighting and making every room gray is just terrible. Souls games typically have some of the best atmosphere in the business, sometimes you can still see that shine through in DS2 but the majority of the areas are bland, unpolished and borderline unfinished looking.
The dragon mansion that was in the reveal trailer is completely butchered in the final version. The layout is the same but the feel is completely gone.
http://www.youtube.com/watch?v=z_JFDPCtXFY&feature=player_detailpage#t=361
The difference is staggering, all those rooms are just gray now. The main setpiece with the bone dragon is a mere shadow of its former self. The painting hallway with the amazing lighting now reminds me of a pc game from the late 90's. The lighting really is THAT basic looking at times.
I really hope the PC and inevitable next-gen versions deliver on the original promise because I don't want to experience the game in this state. The gameplay might still be solid but I can't get past the horrible lack of polish and care put into these versions.
I don't get how they would have to cut it back THIS much, it's absurd. It's so inconsistent too, the game can push some great looking areas with nice lighting at times but it's like they didn't bother doing a lighting pass on more than half of the game.