Background history: I loved R1's single-player, and thought that the single player footage shown thus far has been uninspired and generally mediocre. And ugly.
Then I watched the GameVideos Iceland vids. HOLY FUCKING CRAP, this is amazing! The water effects, the goliaths, and the close-up with the angel... oh my god. I haven't seen anything from the forest level either.
The blur combined with the new sprinting is awesome too. I really wonder what the Chicago level looks like now, with the new water and updated effects...
I still am not completely convinced that the 2-weapon system is the way to go, but holy crap Insomniac, why did I ever doubt you that much :O