When I started Daggerfall, I thought - nice!
When I walked to the lake edge at the start of Morrowind and splashed about I thought - WOW!
When I emerged from the start dungeon in Oblivion I thought - OMG it's amazing!
When I started Skyrim I thought - Oh, it's a bit ordinary (Qualifier - this is on PS3 so to be expected) If I had it on PC it would have been a WOW! I'm sure.
Point being it's all relative, at each release the graphics have been brought along enough to be looking good for the period.
In time we will come to look back at Skyrim and think it looked butt ugly.
Remembering of course that the game will always be developed "behind cutting edge" both to allow a wider user base capable of running it and because the dev cycle takes time so can't be aimed at tech thats destined for 3 years ahead.