Graphically, I am ultimately hoping for a couple of things:
1) Very long draw distance. I want to stand on high hill and see for miles down into the valley. But just as important as the long draw distance, is the ability to go to places you see without any barrier, (within reason of course).
2) Realtime shadows across ALL surfaces. More specifically, shadows being cast by buildings as well as characters/npcs.
For my part, I'll be playing this game on a brand spankin new PS3 slim, (unless the PC version is required for shadows on all surfaces).
I must say, this is my #1 look forward to MMO right now!
...now if only they have the Diabolos server again!!