It's not wrong to judge it on that, I'd just call it stupid.
When the developer tells you they aren't pushing the graphical envelope and you still expect it, there is something wrong with you. lolz
1) I didn't follow the development of the game. I don't follow the development of most big games today because I find out it adversely affects my enjoyment.
2) There's not pushing the envelope, and then there's a game looking disappointing. I can understand not pushing the envelope, but Halo 3 looks disappointing for a AAA event game. Actually, I guess it's just an A game since we know there's no AA :p
Note that is is still a good game, and that's what's important.
fwiw, bungie pretty much said in response to the beta's graphics' lukewarm reception that halo 3's graphics should be judged on its single player graphics, understandably, because the mp is always about performance etc. and that people would be glad with the game's polished graphics.
I was going to bring this up, too, but I couldn't find confirmation that it was Bungie that said it, and not Halo fanboys.