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You said that the game does not use more than 17% of the CPU - let me guess, it uses only one core?
And I have bad news for you - you have a very low chances of running the game in 144FPS (you have a 144Hz monitor, don't you?), except in a few places. Main hubs where there is a lot of NPCs and players, especially those added in recent expansions have a really severe lag issues, so even if your machine can handle this, the game's server might give you some annoying surprises...
There has been talk of a graphical update, beyond the small things they have been doing over the last few updates. They've never stated exactly what that means, or any timeline for doing it. There has also been some talk of a console port, but that seems unlikely to me.
I don't know if they actually will do any kind of update to the graphics, or if that would also mean some kind of update to the engine behind it. All we can do is wait and see.
We've been receiving the "Graphics Updates" ever since the SSG LOTRO Team settled into their Current Graphics Style which can be seen from areas such as the Wildwood Quest Pack, Blood of Azog Quest Pack, Fate of Gundabad Expansion, the Angle Quest Pack and the upcoming Yondershire Quest Pack in Update 33.
For LOTRO to Consoles this is actually a very unknown area due to the information given which was only by EG7 that Piranha Games (that they own) will be shifting their Team to the Lord of the Rings Online after Q4 2021. So as best can be guessed since 2022 started said Piranha Games have "most or a majority" of their Team working Behind the Scenes on LOTRO. It's wait & see what will happen there as this has never been discussed by the SSG LOTRO Team beyond: "When we have something to Announce we will".
The only graphic update I've seen was Per-Pixel Lighting.
For example: Go check the Lone Lands on it's South-Eastern Side along the River Hoarwell (Mitheithel) south of the Last Bridge. While the Lone Lands as a whole didn't receive a full region Upgrade to the Current Graphics Style it did have the Landscape closest to the river getting changes. This can be seen quite well if one goes to the Harloeg where the Trolls are in that part of the Lone Lands.
This is how the Graphics are being "Updated". The SSG LOTRO Team have never spoken about doing any singular Graphics Update, New Graphics Engine or anything else but that pending anything every Major Update will see more of LOTRO using the Current Graphics Style.
Have you played the game 10 years ago? The difference in aesthetic is insane. Some zones are still "old" I believe so it's not that hard to check.
And agreed, with others here. The game uses one CPU core only, so the faster you can get that one core to run, the better your game will run. Try turning windows power settings to performance rather than balanced, to have the processor run at max more consistently. I believe the i9 has a lower base clock than some cheaper processors, but a higher max clock, so this could make a difference for you.
I have run the game with a ton of different processors, most recently with both an i3 10105 and an i9 10850k, and there isn’t a huge amount of difference tbh because the i3 already has a max clock of 4.2ghz ish and the extra cores don’t matter.
If you stand on the beach at Azanulbizar and look to the mountains, the FPS will go very high, then when you turn to the west and watch the battle, the FPS drops. This is how you know it is CPU usage, as your system tries to cope with the high number of things going on at once.
Running the game from an SSD rather than a conventional hard drive makes a huge difference to performance also, as the assets will load faster in all situations.
But I completed Wildwood a few months after it was released and it looked exactly the same as Bree-Land. I've seen screenshots of the latest zones added to the game and they also don't look much different than the first ones. It looks the same.
LOTRO doesn't have the differences that WoW has between zones in Vanilla, TBC, WoTLK or even after.
The engine is a joke and just doesn't perform well at all.
What I've found helps the most is turning Screen Space Reflections to low or off. My 55 fps went to 80 with this single setting.