Consoles are holding this game back (graphically)

[Gilraen]

...having larger monsters, etc.

Have you done Steps of Faith or seen the Exploration trailer? Vishap and Brontosaur aren't little. Heck, Brontosaur looked like it should have squished that one player when it stomped. And Exploration is going to be this big 24 player alliance thing. And physics doesn't improve gameplay, just immersion. Physics can actually harm gameplay. Anyone that's dropped a fireball inside a living room or dining room in Oblivion or Skyrim can tell you that.