The reason PS2 isn't "showing its age" is due to the horrible hardware design. It took the developers a lot of work to figure out a way to get decent graphics out of it. They are still figuring out ways to improve graphics, so the games are looking better, not worse.
With that said, PS2 still doesn't compare with Xbox or Gamecube. It just doesn't have the power to compete. Only time PS2 looks good is in screenshots.
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