Engine seems to struggle a bit with strong global lighting, like during the day, where large areas of environment are lit in unison. Game looks pretty great at night when shadows are masking a lot of the rougher areas, and neon illumination contrasts nicely on dark backgrounds. Seems to be a common problem with a lot of engines: bright environments vs. dark environments. For example I've always felt Naughty Dog's PlayStation 3 game engine looks shit loads better in brighter environments than it does in the dark. This seems to be the other way around.
I also don't really understand the Infamous comparisons. I'm sure the PlayStation 4 can crank out even better than Infamous: Second Son, but this is a game that has been built in assets and engine exclusively for PlayStation 4 hardware. The comparison really isn't apt, Watch Dog downgrades or not, as the latter game is multi-platform and multi-generation. In 99% of cases you're just not going to get the best out of hardware when your game and engine have to take into account severely limited hardware even if there's a "next generation" build.
This is especially true when we bring in Nvidia/PC bonus stuff. In many cases these cross generation games do not result in a major overhaul on PC. It's fundamentally the same asset content as the Xbone/PS3 builds, polished and spruced up with the usual PC advantages (resolution, texture detail, etc). There's the odd contender (eg: Crysis 3), but usually these cross generation games are permanently hindered by their asset and engine limitations and no magical game changing PC build exists. Many of the engine/graphic additions outside of the regular are spit and polish are physics or detail driven: enhanced cloth, wind, grass, softer shadows, and so on. These are not big changes but none the less computationally expensive effects that subtly enhance nuances in the presentation. They are what they are.