Yeah, totally. That trailer was probablly the biggest piece of bullshit any E3 has ever pumped out.
That said, yeah, they managed to get the gameplay footage pretty similar, graphically, although there doesn't appear to be nearly as many enemies on-screen as I remember there being in the 2005 trailer. That trailer seemed to have a full-scale war going on, while what we really seem to be getting is on par with the original Killzone, with maybe 3-4 enemies at a time.
That said, Killzone 2 doesn't seem to blow away any high-end PC FPS, but it certainly stands up to them.

