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This is nothing new. While the terrains look extremely cool, consider two points:
a) As of now, the thing runs approx 20-25fps max at mid-resolution. Going from cpu to gpu shaders, they think a threefold speed increase is possible. Still way short of 1080p at 60Hz.
b) Notice how "dead" everything is? No moving parts, no shadows (static or dynamic) ?
There is some doubt that this technique is actully going to work for "real" games. Point b) (water particularly) seems to be the key problem for this technique).