I'm kinda 50/50 between Valve's Source for its incredible physics and HDR/atmospheric lighting and the Lithtech Engine with its awesome and intense sense of movement and particle effects.
My games lists pretty much says it all under Source. Portal 2 was wonderful looking and ran like a charm even on my mid-low range theme. Its proven capable of good adaptation since its being used in the mods Half Life Wars, Empire Mod, Garry's mod, and now the game version of DOTA 2.
It may not be Unreal 3 but it clearly gets the job done.
Source, Valve+Modders have done WONDERS with the thing. I expect that to continue happening for many, many more years. Frostbite 2 looks amazing too, and I'm looking forward to BF3, and if it ever occurs, Mirror's Edge 2 (Never actually played the original game, but it looks interesting).
Gamebry-oh wow, can't even type that with a straight face.
Naughty Dog's Naughty Dog engine (yes, that's what it's called). Great lighting effects. Unreal engines are cool too, for giving so many developers a quick and easy way to put together a game.
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