Yeah...Thats basically how it looks (WOW). It can look better (as stated above), but IMO you either like the cartoony style or you dont. I dont.
As to instancing - IT SUCKS. Sorry guys, but isn't the point of an MMO to have a persistant world? Instances take away from that. A high end raid mob should not just "be there for the taking". It should be something to be proud of when you beat that elevates you over other guilds. I prefer high end rare spawns to accomplish this rather than "we just beat a really hard dungeon. Were going to do it again tomorrow. And again the next day. I keep seeing people talk about how in WOW they raided x dungeon for a month blah blah blah... I dunno...I just don't get it I guess....But to each thier own