I think the RAM issue is the root of it.... but I'm also convinced SE doesn't churn out a massive graphical update has less to do with laziness and more to do with the moral obligation that the 3 versions need to offer as similar an experience as possible.

2.0 was built with the idea that it HAD to scale down, way down, to run on the already very out-dated PS3 hardware, as was promised to Sony. 1.0 was such an optimization disaster that this was impossible.

But now that it's been hinted again and again that 4.0 may drop the PS3 (shoot, Sony themselves could reasonably do so soon, as well) we may not have such limitation.

Or maybe they will. Why fix what isn't broke?