The xbox 360 might be old hardware, but it's still quite capable of delivering some great graphics. Take Fallout 3 for example (uses Gamebryo same engine as D2), which I found absolutely amazing (art style, graphics I mean, other than the game itself) and runs really well on the 360. Borderlands is another example of a great looking 360 game (although I'm sure some would disagree) and it proves that consoles despite their age, have a few years left yet.
But yeah, there has been some harsh statements made as to how Divinity 2 looks. Although nothing mind blowing, I think people tend to exaggerate. I actually really enjoy D2's art style and if the engine were polished and some textures fleshed out, it has the potential to look amazing.
