While I do think Killzone looks amazing, I wouldn't jump to conclusions such as: "PS3 is going to crush Xbox 360 graphically." I think we definetly need to view a wider sample of games from each console before we can really grasp which one seems to be more powerful.
I've been trying to figure out over the last few minutes if the Killzone trailer shown during the conference was actually in real time. Apparently Sony says it was, but everyone else is saying it was not. I suppose only time will tell.