It's worth noting what the Crysis 2 is doing in terms of game & level design as well. A lot of exclusives are actually quite linear and have much smaller traversable areas, pre-computed scenes, limited physics etc. than Crysis 2 does. What Crysis 2 acheives on consoles isn't and shouldn't be limited to solely its visuals. Look at everything that Crysis 2 manages to do in a single package and it's highly impressive.
Imagine what could be acheived if they were to make a smaller and linear based game like Call of Duty or Uncharted 2 on CryEngine 3.
At the end of the day CryEngine 3 is what Crytek are trying to sell.