How can you say that looks shit?
Ok he's lost his sinister edge but that can easily be rectified by thinning his face (he looks like he's eaten a few pies since HL2). He also looks like he's rather tired.
Perhaps this is the look Valve are going for?
Weakness is starting to show through. Maybe he's not the all powerful mastermind figue we all took him for and is actually just a poor business manager who is getting tired from the stress of trying to control his product (ie Gordon Freeman)?
Who knows?
I personally think he looks great. They've sidestepped the real life comparison issue for the moment by giving him extra character (his eyes look larger then real life).
BTW isn't there a name for that effect Vibroaxe? Its a well know phenomenon in 3d modelling and animation.
Hmm...