Do you think that cutscenes should be pre-rendered?

[SvennoJ]

Pre-rendered.
Cut-scenes should be a reward for finishing a section, not an interruption you want to click away.

Pre-rendered will keep the cut scenes shorter and without the constraints of the engine they can be a lot more engaging. Fast cuts, multiple angles, no limit to moving elements on screen, fast motion sequences.
Pre-rendered scenes can mask load screens and other work that needs to be done to prepare the next section.
Pre-rendered scenes can all be from games assets, yet can also give an exciting glimpse of what will be possible next gen. Either way, they can use the best possible version of all game assets, no close ups with flickering shadows and textures popping in.

The only downside is character customization. However the movie industry has worked for a century with blue screen, same as live action games. Rendering the correct characters in between pre-rendered backgrounds shouldn't be that hard.