Kyle,
Good topic. My opinion is that the setting matters greatly, that one cannot separate the setting from the course. It's no coincidence that many, even most, of the greatest courses are located in unusually beautiful places.
And though not directly related to this topic, I would also submit that all courses possessing great architectural merit are beautiful. Beauty is in the eye of the beholder, and a great course on landfill would appeal to most golfers.
Beauty is a fine way to describe how I evaluate a course. If I find the course beautiful, then I like it. An ugly course in a beautiful setting is not beautiful.
JK