Trust me, those screenshots are shit. They put those screenshots on this months magazine coverdisc, when you see them on a HDTV you see the improvement!
As for fogging, the engine doesnt need to use it. Did you see the E3 announcement trailer? Thats the H3 engine, the trailer is running in real-time. According to the article in the magazine the game uses a heavily modified Halo 2 engine. There's a shot of a snow map with little turrets in the distance, the turrets are there to stop people going to far off into nowhere, the engine doesnt need fogging! Multiplayer is limited to 16 vs 16 so to avoid too many players just clogging up the tactical team maps and games devolving into mindless shooting.
The 360 is a really powerful piece of kit, Gears of War is showing this already, as is Lost Planet and Mass Effect...and these are second generation games! As we all know, games just get better and better as a consoles life goes on so games like this so early on in the machines lifetime is saying good things about the 360, especially as all of the games mentioned in this post are 360 exclusives (or at least Microsoft exclusives in the case of GoW). I highly recommend anyone to get one if they can, its by far the best games playing machine ive ever owned.
Sen