Upgrades could be done to the PC and 360 clients that could be done that would not require them to upgrade the art assets and geometry of the game or drop PS2 support but which would still vastly improve it.
Most texture artists create textures in a higher resolution and then scale it down to whats needed by the project rather that working on 256x256 postage stamps. Geometry is usually created the same way, you make a high poly version of the object first and then bake the surface and transfer those textures to a low poly version of the object. Unless SE has been throwing all of their files out they already have high res textures and models for most of this stuff. You don't just toss files when you are done with a project you archive them for later use in other projects.
