Here is a comparison of the 2005 Heavenly Sword Trailer and the footage that has been shown in 2007.
Context is important for this comparison. The 2005 trailer was made from gameplay footage, but of course including effects that they hoped to achieve.
The footage that has been shown in 2007 is actually from a 2006 September/November build. There is reason to believe that the game looks even better now as claimed by the developers themselves and from the recent screenshot they revealed.