Just saw this post on the N4G comments:
"Two of the new stages are programmable (the hull and domain shader stages) and one is configurable (the tessellator stage). The xbox 360 is not a brute force chip compared to the tech coming out this year for direct x 11 yet if you watch your resources you can make use of the pooled memory set up the xbox 360 has, which is why so many complain about the rsx set up. You see we told you it was not future proof LOL.
This is really the reason why the PS3 was a let down in so many ways, maybe not to the gamers yet more to the developers. The tessellator is a fix function tech and the cell in the PS3 is not powerful enough to produce the same out come as a true fix function set up. It takes the larrabee 30 cores to do what ati will be able to do in one fix function hardware. Devs will need this extra ram to see what is going on with in their code and set up of this tessellator and how it effects the new programmable parts. The commercial tools are coming in august also!
This is new tech we are playing with but it is not uncommon. To use it before MS's API you basicly had to create your own drivers which is pretty hard to do if you are not MS. MS pretty much tells the hardware guys what to support. I'm glad some one leaked this stuff because directX 11 is going to be fun and the new GPU like cpus are going to be fun also. We will get a little next gen bump right now before the next gen. NDAs are in full effect here. ATI is currently ahead of this game by a few years and nvidia was one of the main reason this tech was left unused. What is funny is even in the PC realm this has been confirmed by gamers and devs. Yet no one supported it because ati was the only guys to do some thing with it. Now you have intel jumping in so nvidia has to answer.
Right now people a debugging stuff and a few things have been shown but if we or other developers get what we want from this new tech you will have almost the effect of real time sub divisions happening along with real geometry with normal maps or with out normal maps. If this new method is faster than normal maps then it would be a superior tech. This will mix texture mapping and high polygon modeling together. There is the possibility that you could achieve better looking texture this way and use less ram. Since this is more of a procedural method."
This guy is in full agreement with ya squil.