I'm very satisfied with how it looks so far, regarding the "too wowish" apperance. And seeing that Diablo 3 is "first and foremost a cooperative game", it doesnt really matter if youre able to recognize gear equipped by others. Especially if the PvP in D3 turns out to be anything like in D2. Oh god, the PvP in D2 is probably the worst in gaming history ever. But seeing its not designed for PvP we cant really complain.
Now.
I hated the aura given by sets in D2. Its looks silly and is badly executed in the terms of angles and the isometric view. The vampire-look given by the trang-oul set is also pretty silly. No necromancer with selfrespect would ever dress up like a vampire

Ofcourse they would have made it look better in D3, but I would rather see an extended difference in design. Just tossing glowsticks around would make the game look cheap and you would think that it wasnt a game which had been put alot of work in.
Back to the "wow-look".
The complaints about armor "poping" out too much is highly exegerated. I believe its fairly balanced, because if you look at the armors in D2 they almost look skintight.
Now who has ever seen a skintight full metal plate?
I think if they could balance the size between WoW and D2 it will be just perfect, cause looking at a Death Knight with a full tier 7 set is pretty damn silly.