I didn't spend that much time on 1.0 so I have a hard time saying what part of it looked better; but while 2.0 was a general improvement ( no longer full copy past, etc ), I definitly felt a downgrade. Definitly something about the lighting, and even maybe the polycount and texture quality.
The textures were def. way better in 1.0.
Some areas looks better in 2.0 just because of better art design.
Who gets me the most about 1.0 is how dull the combat looks, like spellcasters not even unsheathing their weapon and barely look active when casting. At least 2.0 made those animations seem much more involved.
True, but at the same time 1.0 had unique race animations, that was neat. The racial animations got lost in 2.0
with the girls asses too.