Conitec is partly to blame for having so ugly
Models (Cyberbabe, Warlock) in their tech demo and templates.
Also the standard WAD included is rediculous, consisting of
textures that are at least 11 years old. (some quake 1 textures)
People new to the engine, who just look at the 3dgs demo will get
such an impression.

Of course acknex can display nice Models.