Yup, playing at max settings. There's nothing wrong with the technology.
Unfortunately, Aion's graphical weakness have more to do with the artists who don't seem to know how to utilize the tools available to them.
Just look at the trees. That's not how you build a tree in CryEngine (so says one of my friends).
Edit:
My friend just corrected me. Aion is only using CryEngine 1, which is more than 5 years old, so it's natural to look a bit dated.
She and I both thought Aion would be using at least CryEngine 2.
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