Time for the comparison shots you have all been waiting for.

The only things in my shots that are not default are the water shaders and airplanes. Everything else is out of the box default. The locations are matched as closely as possible. I have not been able to find location 2. It seems to be a very tricky one to find, even with help.
Screenshot 1FSX

Flight
Screenshot 2Location has not been confirmed
Screenshot 3FSX

Flight
Screenshot 4FSX

Flight
Screenshot 5FSX

Flight

Based on these shots, we can conclude that there is a huge improvement to the capabilities of the scenery engine. (probably a rewrite along with a texture set that is going to be completely new. They are probably still working on replacing the textures.) The shaders appear to have been upgraded a good amount. Buildings look like they have self shadows. (visible in shot 2, not posted here, but available on the Flight website) The overall lighting on the aircraft in shot 1 and 2 seems very nice compared to FSX. (was forced to use FS9 planes in the comparisons due to the lack of fsx native freeware Stearmans and Vans RV-6A's) The water in Flight is looking good, although lacking some reflection. Hopefully that will be added. As for the waves meeting the coast, that is a huge improvement. Waves washing onto the coast in Flight are like nothing we can get in FSX. It would appear that the sand is even left a little wet from the water! Clouds look mostly the same, although there might be somewhat of an improvement to the way they are rendered. (more coverage?) Sky textures look to have all been redone. That horrible bright blue from FSX looks to be gone. Autogen coverage looks to be quite good. You can see it go out much further into the distance in Flight than in FSX. Ground textures look much better, although blurry in spots. My opinion on this is that the settings were not turned up all the way for these shots. (Microsoft doesn't want to show us even more amazing shots, then end up having to cut out a feature and Flight not look as good in the end.)
Overall, there is a huge improvement to the whole graphics engine. (I'd guess that it's a rewrite in progress, or completed. Texture set could be a work in progress with most of the textures we saw in FSX getting redone) As long as it delivers with these amazing graphics and good performance, it's a definite win. The online store shouldn't kill freeware. It's a store...meaning, it will offer payware, most likely. Freeware will either be available on a specific freeware place at the store, or will be freely available at all the normal add-on websites. Add-on development needs to be a little simpler for beginners, so I hope that they make that a goal.