PS3 LIMITATIONS! :p
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Those cutscenes are the only impressive thing this game has graphics-wise.
-there's always only one lightsource that casts a shadow (which appears broken/aliased depending on angle)
-shadows and objects appear out of nowhere
-there's always a visible border between background and foreground
-no free choice of anti-aliasing/texture filtering (which is required for optimal performance per GPU)
-no setting to reduce the poly count
-ambient occlusion is horribly broken
-DoF causes graphical anomalies (pixel storm trees)
-you can only see characters that are very close to you
-alt-tab in fullscreen mode
Could probably think of way more stuff... but this shall do for now :P
One thing I've noticed on my computer (Radeon HD9670, 1020 x 1080 monitor) is that, at night, the names and other UI elements are excessively iluminated, compared to the world and models, causing these to be difficult to see, because of contrast.
Should this perhaps be moved to feedback & suggestions?
I think your monitor needs adjusting, the pic looks decent for me. Of course everything looks even blander if you don't enable shadows.
If you disabled them for performance concerns, I would recommend that you lower drawing quality instead, setting background drawing quality to 2 makes a huge difference in GPU load.
*cough* Shadows will be rendered if they are disabled or not it seems <.<
Basically you can't do much about the performance. Most settings in the config don't do anything relevant except making the game look bad. Only general drawing is having a negative effect on highest settings.
So enjoy high settings and live with the low fps :P