Real life has sadly gotten in the way of everything as of late. And I mean everything
I too think the hyperbole is unwarranted. Though It seems honestly like the xb1 release is not where they targetted their
rendering feature budget necessarily, I doubt they were originally thinking "Yeah, let's make the game run at a resolution that people think is last gen (after the whole controversy surround Alan Wake's resolution on xb360) on a console that has been controversial for its performance". Rather, I think they were just trying to make a pretty game, with pretty assets, and pretty effects which they then tempered to still look good on xb1. The early videos and screenshots of the engine in action show how it was obviously targetting some sort of higher-end PC given the resolution and the difference in clarity.
I really do not buy the whole thing Phil Spencer said a while back about this game not being originally designed with PC's in mind or whatever. I mean, just look at this screen below... what game has any IQ like this on xb1?
I made an argument once about FFXV (that is the new FF game, right?), that their choices for AA and AF were destroying all their art and effects work. Unlike that though, the draw back from resolution here seem to only affect one area so far with great magnitude, and that is image clarity and high frequency detail. Thankfully, they at least have something to combat the huge stair stepping that 1280X720 really would have. Thankfully the post processing is so abundant. I may not prefer it necessarily, but they are at least trying to mitigate inteligently. They manage to maintain a wide suite of effects in play and did not cut out one of those. That is a great thing. I mean, it is just an xb1, something has to give and it has usually been the resolution. I think xb1 gamers have come to accept that, just as it was acceptable that something like Ass Creed, Battlefront or Rainbow Six were sub-1920X1080 on all platforms. You can see where and why that is so.
The LOD being really close to the camera frustrum or the general lack of high AF is not that surprising honestly as that has been a common things for almost every console game this gen.