Something you should note, Everquest didn't look top-of-the-line when it came out and hasn't until 2 came out. That didn't stop people from playing it, now did it?
The reason for the sub-standard graphics is to make sure that everyone wanting to play woun't be hindered by insanely over-done graphics, just bandwidth i'd immagine. It's a marketing ploy, and if it pays off in a great online experience, good for the publishers/developers.
Bottom line: It may not look as good as some of the sensory-overload inducing games that have come out recently, but that should only hinder the shallowest of gamers.