In all fairness, I believe that the CryEngine 3.0 is just as advanced as, if not more feature-packed than, the Killzone 3 engine.
However, based on everything we've seen, Crysis 2 (on consoles) is a far less polished game than Killzone 3. Crysis 2 on runs at sub-HD on both the PS3 and 360, has a terribly inconsistent framerate that drops to ~15 fps on many occasions, a lot of aliasing issues, and SEVERE pop-in. KZ3, on the other hand, runs at a mostly smooth 30 fps, is full 1280x720p, has amazing MLAA, and is overall a much more polished and smooth presentation.
Obviously, the CryEngine 3.0 tech still has a lot of maturing to do on the consoles. I'm impressed that they're able to pull off a lot of graphical features, such as object-based motion blur, real-time radiosity (I think), and dynamic shadows/lighting, in a multiplatform engine and game... but the overall result is too messy/raw, all things considered.