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In Foundational Principle #12 - Speed Matters, Andrew basically stated that gameplay will trump graphics, so the graphics must be done in such a way so as to not hamper gameplay when potentially hundreds of players are duking it out. This likely means that, on a technical level, the graphics in Camelot Unchained will not be state-of-the-art, as those games have the luxury of being single-player games with a predictable amount of stuff going on. Anyway, all of that makes sense and I agree that keeping the number of polygons and quality of textures and lighting to a reasonable level is a good thing.
This leads into whether such a game would benefit more from going with a stylized approach to graphics, such as Warhammer Online: Age of Reckoning or World of Warcraft, or with more realistic graphics, such as Dark Age of Camelot or EverQuest II.
In my opinion, stylized graphics age better and look better at lower levels of technical detail than realistic graphics. It is likely due to them naturally appearing fantastatical, so we do not gauge them against reality, whereas games that try to look realistic naturally draw that comparison and quickly look shoddy.
World of Warcraft is nearly a decade old and still looks all right (barring the avatars, which look pretty terrible), for what amounts to a dinosaur in video games. Granted, updates to the engine have helped, but compare it to EverQuest II, which looks even more plastic and bland than it did at launch. Everquest II had more polygons, better lighting, realistic cloth effects, etc., but after a few years it looked tired.
Anyway, if Camelot Unchained is going with the approach of keeping the technical detail lower so as to allow massive battles, I hope they do not try to make things look too realistic. While I certainly do not want to play a cartoon, I think something a bit stylized would serve the game better in the long run than trying to look too realistic.