The art assets, as expected from a top production from Blizzard, are of high-quality. There looks to be a lot of dynamic lighting and shading used in the game. One thing I've noticed is that there seems to be a lot of smoothing done on the textures, making everything a bit blurry. There is also a hardly noticeable bloom effect.
The color palette is a bit more restrained compared to other Blizzard games, such as World of Warcraft. There have been many comparisons made to the style of items and armor to Blizzard's mmo game, but the color is much more subdued.
However, the art direction Blizzard seems to have taken with the series is a pretty big departure from the grim, almost goth style of older games. This has, unsurprisingly, caused a backlash from hardcore fans who disagree with the new visual style. There is even a petition online with over 30,000 signatures demanding a return to the older art style of Diablo games. A fan rendering of what they'd like is available here.
Personally, I feel fans' opinions are unsubstantiated at this early stage - Blizzard was showing off an early area of the game, and there will be plenty of chances for later parts of the game to grow "dark". Furthermore, it may be Blizzard's intent to show off a relatively "good" world in the beginning of the game, only to let it slowly deteriorate into older games' art style.