We need to compromise as a player base

[Zaniel]

In this case, conservatism would be preventing the game from taking a step back
how could this ever be considered a "graphical upgrade"

This is a weird one, I can't speak to different lighting or movement etc obviously but as presented in those two pictures the Dawntrail one is objectively worse graphically, regardless of what one might think of style or precise character elements. It has no depth and just looks like a store-front mannequin with a face painted on the front, dunno wth is going on there.