Crytek are dealing with SEVERE memory limitations on the consoles so it's to be expected that textures would be low, draw distance restricted and a whole host of other limitations come into play.
Thanks Mr Obvious

Physics may change the gameplay though so i can understand not changing that, but in the case of textures, polygon counts, water effects and so on theres no excuse.
Not saying i hate the game, just the devs not putting enough time into the PC version as usual.
Hopefully the DX11 update will actually do something graphically plus add tesselation and not just have the exact same graphics but running on DX11.