2. That doesn't even look good. It looks worse than Unreal 3.
To quote the video,
"We're far from the world's best artists." The video is meant to showcase hardware potential, not how pretty they can make something. This video is meant to impress gamers, true, but I think they went about it the wrong way. Too many are only looking and not listening. I'm no modeler, but from what I've seen one of the issues with newly made mechs(out of the several problems that face the staff) is polygon count. Got to have enough that it looks like a mech and not a giant cardboard box with a pretty mesh, but gotta have few enough that it doesn't try to kill the game running such a complex device.
In short, if their breakthrough is legit, don't look to them for graphical wonders. That's the artist's job.
Just a few seconds before the link above
you can see this, a Crysis 2 tree. Do not look at it as far as how the bark looks, that is simply the image pasted on to the in game geometry that is the 'tree'. Instead look at the shape of the tree. Then compare it to the shape of the tree shown with their system, can you not see the difference in the shape? That is the point here. Not how pretty it looks but how real the geometry looks.