If you have a FF stick, there is a bug in DX9 that will cause the fps in Targetware to drop into the single digits. They're working on it.
Check your video settings. Most people who've said that it looked ugly later admitted that they were running in the default 800 x 600. Graphics may not be to a particular persons tastes, but the polygon counts are much higher than AH, the textures are much more detailed, and the terrain has a higher resolution. How exactly is it ugly? I hate the font they use, but other than that I think the planes and terrain look great.
And it does require more computer horsepower than AH, and a decent video card. Of course AH2 will be the same. Your not going to be able to play recent flight sims at a high resolution with all the goodies with a 800Mhz PII and a GF2 card. Targetware machine requirements are pretty similar to WB3 in my opinon.
While I personally think the wobblies are bad, most of it can be fixed by properly tuning your joystick. How many of you have actually setup your Saturation and Scaling? Try flying AH without setting up your sliders and joystick settings. I agree that Targetware needs a better joystick setup routine.