Then engine can drop detail when not available or when selected by the user , instead of dynamic shadows he runs on with offline shadows, no bumpamapping, and this goes on and on.
Any kind of game could be made, as long as it's a game that needs a 3d camera, fps, rgp, diablo types, racing, etc.
static meshes are exported directly(from Max or Milkshape) to out format and loaded into the editor., or can be converted from .3ds to our format., animated meshes we use the cal3d animation library.
The scripting language used, it's LUA.