Yes. Yes. Dunst was also not attractive enough to be MJ. MJ is supposed to be Megan Fox caliber hot.
Let me be the first one to tell everyone this, so you all don't set yourselves up for disappointment, because you will be disappointed.
They are not going try and find a Mary Jane who looks the comic book version, not only because that's impossible given so many versions of her. But, because trying to find a hot porcelain Barbie doll type woman (or girl in the rebooted movie's case) who can act and be this overly hot fantasy girl, for horny Spider-Man fans to m

sturbate over when they buy the DVD, simply isn't going to happen.
As you see in this very thread, people have different ideas of what beauty is, one think this one is hot, one thinks one is average. And so and so on.
This is also the case for Peter Parker, somewhat, there's too many version of Peter in the comic books to really pin point what he should look like, there's over 20 various versions of Peter in the comics. Some like this look and some like that look. Again, so on and so on.
Sure, it's possible to have both, good actress and incredibly hot chick playing MJ, it's just rare that that's going to happen, when the choices are so far and between, especially with Young Hollywood's talentless ass (I'm talking to you Megan Fox and Jessica Alba) and searching for relatively unknowns.