I like the current cover and interior art
Look at the old picture of "A Paladin in Hell". There you have more "real-like" full plate armor, large shield, and a longsword. Some seem to like this. But how about the paladin's helm of brilliance, belt of giant strength, cloak of charisma, back-up mace, longbow and arrows, boots of flying, etc. And I have to point out how absurd that "real" paladin looks combating a fantasy devil.
I like the "tome" covers of the D&D3 books. As someone else above said, it gives the books a weightier look. The older "scene" covers of the previous editions look too gamish and cartoony. That was great when I was in high school, but now I want a book I can feel comfortable reading in a restaurant at lunch.
The so-called "dungeon punk" look is actually closer to how most people see their characters. But really, of the iconics, only Hennet and maybe Mialee look "punkish". The others look more "realistic in game terms". I mean, you see their mix-and-match armor and gear (why would gauntlets of ogre power found in the troll lair match the half-plate armor bought in Greyhawk). You see their secondary weapons (Jozan has a crossbow). You see their equipment (the gnome illusionist has scrolls and potions tucked under his belts). You see their quirky ornamentations (Krusk has that trophy jaw bone on his shoulder, the elf druid has antlers tied in her hair, the paladin has a brand).
I like the interior art of D&D3. It matches the "reality" of the standard D&D worlds as *most* players see and play it.
And as for comparing it all to the new LOTR movies: note how Aragorn wears no armor at all; full plate armor does no good for the orcs; Gandalf has no sheath for his sword; etc.
Quasqueton