According to Brack, Blizzard will be making the changes bit-by-bit rather than all at once. "We're taking an iterative, organic approach to graphics upgrades," he said, "going feature by feature as opposed to thinking in terms of an overall new graphics engine."
As for the WotLK changes: those will include a new shadow engine, some new shaders for "even better looking terrain, as well as cool ice effects," and an increased view distance to make those expansive Northrend wastelands look, well ... expansive. He also noted that new water effects will be coming in "a future content update or expansion."
[Via WoW Insider]
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