Well, to be fair, I haven't played KZ2 in some time so my memory of the game may be a bit hazy. And after watching the Gamersyde video, there seem to be some graphical shortcomings that weren't so obvious in the Youtube footage, so maybe not.
But this had more of an impact than the Suljeva level in KZ2, which is the closest similar environment I can think of, and I sort of like the lack of a dramatic, oppressive tone. A lot of it is probably just the action, though the muted environment really makes the explosions shine.
As for the camera position, I don't necessarily like the field of view, but I also really dislike the way it looks in for example COD, where it feels like you're running around holding guns constantly at arms length in front of you.