Not totally without foundation though.. Several games have been "limited" so they won't look better than consoles, just check out the new batman game for one. PC version limited to 30fps like consoles.
Definately, and that's one of the major problems with graphical downgrades.
There is no objective reason why a console game and PC game have to look or perform the same. It's mainly so the console players don't feel like they got the cheap version.
The funny thing is that PC gamers with lowend hardware, accept that it won't look as good as on a highend PC — But console players/developers/publishers can't accept that their hardware is for low-to-mediumend.