No, it looked outdated because they had to make the damn thing fit on an Xbox360.
Also, the reason those demo screenshots look much better than the final game is that they didn't overlay all the muddy DOF blur, overly-bloomed and desaturated post-processing effects.
Also, the vast majority of the textures you see in the Xbox version of GoW, are set to be no higher-res than 1024. The engine.ini locks them down so the game will fit in memory.