Yea the AO is really harming that screenshot (And lets be honest, that ground texture is pretty eh, and makes that spot look super flat). Otherwise it's utterly gorgeous and I think it goes to show, like what has been said over and over, that weather really does have a significant impact on the atmosphere/mood of the game. Sometimes it'll look brooding and dark, other times a bit flat and stylized, and you'll even have those moments where the combination is just utterly perfect, and you just stand there in awe.
It also states on the Nvidia support page for TW3 that it has HBAO+ support (And has been mentioned multiple times at tech conferences and interviews), so don't worry friends.