I hope you realize people say that about every mmo.

MMO's aren't supposed to be lookers. They need to support a high number of players on screen and be able to run on a majority of machines.

Graphics are literally a small part of the experience.

It's not that i'm not in favor, but these are gigantic projects. The only way i see it working is the way PSO New genesis did it. Keep the old game in the back burner and start over with the new one.
Still, it's a huge risk. I don't know how well it's working for PSO2 as i don't play it.