So it would appear that Sony and Microsoft paid the Watchdog Creators to dumb down their graphics to "Next-Gen" console levels. However, Ubisoft already created the graphics and engine features and they still exist in the game files. The gaming community found these hidden features and created a mod so you can play it without the graphical restrictions.

Here's a thread to people releasing one of the mods:
http://www.neogaf.com/forum/showthread.php?t=838538


Here's the video of the significant differences in quality:



and pics:
http://imgur.com/a/QCmYD