I'm not going to argue which one had the better graphics, as such things are subjective and IMO each one did some things better and some things worse than the other.

However, no matter which you prefer, 2.0 is what we have now and they are trying to improve the graphics without tanking the performance, we'll just have to wait for the dx11 client to see how much of an improvement is made.

One thing that I definitely agree on is the camera work for the cutscenes. It was more more dynamic, with better framing and movement that added to the energy or feel of the scene. While I don't expect them to go as far as some of the 1.0 examples shown, I feel that they could definitely make some improvements that wouldn't really require more development time, such as camera work. The Hildi team does a good job though.