I was about to make a topic concerning this. I think MS might have made a huge mistake here.
If the developers are telling the truth and Killzone looks amazing in the demo, MS will look stupid. Why? For rushing Bungie into showing an unfinished project again. Halo 3 was revealed awhile ago, and when it was it looked like Halo 2: HD. We all know it'll look 10 times better in the end, but why show it now? When people see Killzone, assuming it's as good looking as advertised, MS will have egg on their face. Again.
Personally I don't think the game will look fuck awesome next month but we'll see