You clearly do. I have perfect eyesight as routinely claimed by whichever optician I visit every year. I see KZ2 as actually beating the target render. So does everyone in the comments sections for the numerous comparison videos around the internet, such as on GameTrailers, etc.
It's okay, it's fine to be wrong, you shouldn't feel so bad about it :)
Some of the FMV vids from Final Fantasy VIII on the original Playstation looked this good. Prerendered footage means nothing and it's almost a guarantee this footage was prerendered or run on a high end PC for presentation purposes.
Does not look as good as this: http://www.abload.de/img/1shows.jpg
And did you watch the presentation last night? It was real-time, he was free controlling the camera during most of these scenes and there was seamless transition from every moment so nothing was pre-rendered.
That's why it is indeed as big a leap as prior generations. Well at least from PS2 to PS3. SNES to N64 was pretty mind blowing after all.
This is nothing like the improvements the PS3 had over the PS2. We aren't going from SD with low rez textures and characters to HD with higher rez and more complex character geometry or from 2D to 3D graphics.
This is more like comparing a vanilla PC game on medium settings to max settings.