Yes, this has been severely improved, looks much better now. This was very difficult because it had to be done from scratch by hand, i.e. no mocap. Walk and run cycle are very hard to do by hand
graphics 2d > no, i think they look 3d and guess what, they are in fact 3d
slip fielders > i disagree, though i think it's insignificant in any case
look, i've said it before and i'll say it again, if you want great graphics, go play EA or BLIC...if you want gameplay, play TAOC, it's really that simple.
imho, i actually prefer TAOC in game graphics and cameras to the others. It doesn't have the bells and whistles like shaders (yet) but it actually is more realistic in terms of scale and look, and i can tell you that TAOC physics cr@ps all over the others. Unfortunately i cant prove it yet though to you guys until the beta is released.