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MoHasanie said:

and things like a boost in resolution or an improvement in lighting are outside the realm of possibility.

The lighting thing isn't entirely accurate, because you can offload lightmap generation to servers when approaching a new area of play rather than calculate it locally during the stage loading, and you can stream video data in the form of a black and white image to be used in lighting, too.

So you could, for example, have a baked lighting level, then trigger a firework display during multiplayer, and the textured surfaces would be fed the additional lighting data from the video stream and the baked lighting would be pseudo dynamic during the stream.