Texture mods are not the point here. Some people here cannot get over the fact that it's a Xbox360 port and are taking the graphics point out of context, either that or they have a Xbox360 and think 2006 tech is mindblowing because there is nothing much on the PC to compare it with.
Again, size of the environment has nothing to do with graphics quality since all of the quality is drawn local anyway. Skyrim would look 5 to 6 times better if it were done properly for the PC, with DX11 support. Bethesda couldn't even be bother to update their engine with advanced features or even deferred lighting, which would have made it look much better. Their "Creation Engine" is just marketing bull.