It has been said already, but it's worth reiterating. Game design is all about compromising between what you want to do, and what you can do. So the Dishonored team chose to cut corners in some places, while concentrating on others. For most people, this doesn't break immersion, but for others, it's a constant reminder that it's a game they're playing, not a world they're acting in.
The line between the two is highly subjective, of course. For newman, seeing a world that has gorgeous design but doesn't go all the way in making it real is this line. For Battuta, it's something he doesn't even notice. This does not mean one of those viewpoints is wrong.
Now, as to the subject of entitlement, let's not use that word. It's poisoned by pages upon pages of stupid debate about what gamers expect from a game versus what they actually got. In this instance, it seems to me that it's more of a matter of expectations, and people not willing to let go of what they thought the game would be like. The discussion about the new XCOM, for example, is currently being poisoned by people who expected to get exactly the same game as the original X-COM, but who were disappointed when they found out that not every little gameplay quirk the original had was ported over. It's similar here; people were expecting Graphics on par with the big leagues, but were disappointed when it turned out that the dev team apparently had other priorities.