Hi,
well first off: I've got the sneaky suspicion that that first sreenshot uses prerendered environments. Which means they were rendered in a highend 3d rendering program like 3DS max or Maya. The game character then walks around on a 2d picture.

Secondly that second shot does NOT show the quality of GS. Just take a look at the Gallery page. There are some really nice looking games that were/are being made with GS.