Torchlight 2? Yes, it's ugly. Like...pretty damn ugly. But the effects are decent to pretty good looking and it's a lot fun to play (for me) nevertheless.
As for TF2....it's really really ugly. But it's also pretty fitting for the kind of game it is. Even more so in the "censored" german version, where people don't explode in blood but random toys and mechanical parts.
It's always irritating me for a second when I see TF2 videos and people explode into giant blood fountains. ^^