In my humble opinion, i think that what trully makes a game engine have good visuals is indeed the art assets, i mean, models, textures and shaders.
I think if you are a skilled 3d artist, you can achieve almost the same visual results across several different engines.
I think everything has to do with the user skills in using the engine, be it FPS Creator, UDK, Unity, Cryengine, and any other.
I always visit the websites of Unity, Unreal Engine, Crytek engine, to see some users showcase. I can say that i have seem too much "crap" and junk made with those engines, i have even seen some FPS Creator Games looking and playing more beautifull and more better than some UDK and Unity Games.
Something that i may note here, i think that if you want to be a good indie game developer, especially if you are working alone, is very good that you have at least a middle knowledge on each area that makes a game. You don`t need to be an expert in 3D model, animation, textures, and so on, unless you are working in a specific job on the game industry. So this knowledge will be a very powerfull weapon at your hands, so that you spend sometime to learn a little about everything, be it 3d modelling, animation, sound design, video editting, scripting, read some books and articles on general game design and world level design, and so on.
If you dominate a little about everything that is involved in games creation, you will be able to create a very good game.
And other important thing is that the game most important factor is the fun factor, even if your game has the most realistic 3d visual, shaders and lightind environment, if the game itself is not fun, no one will like to play it.
I have seen some great industry dev spending too much in graphics and forgetting about the most important thing on a game, the fun factor. And a lot of great looking games made by pro devs, were a totally failure, just because they spent most of their time in just making it look beautifull!
So it always come down to the user skills, and not essencially the engine itself. However, the engine can make the user`s life a lot easier, with some good automation tools, like auto terrain generator, foliage, some good lighting tools, and so on...
And from what we are seeing, i think FPSC Reloaded will be some of the best game engines on the market.
Goldenye 007 N64