the question about no-shaders for that scene wasn't the smartest question to begin with. if that screenshot uses no shaders, 3dgs can do it without shaders. if it uses shaders... whoa... wait a minute! 3dgs can do shaders too!! most problems graphics-wise are because of the art, not the engine.
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But at the end when you really work with them then you are happy to have a well thought interface, good camera control and all the little well-thought helps to work on several textures at once, see lighting instantly and much much more.
a realtime editor is in the works -- i do find WED's interface a little clunky but i guess when the time comes that i need to use it, i'll get used to it. perhaps the realtime editor will have enough functionality to bring us closer to that level...
i looked at frank's link, and admittedly the constructor's preview and shadows do look nice 
but i should point out that the complaint about non-integer coordinates in the build is not a problem:
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Don't snap vertices
By default, all vertices are snapped at integer coordinates. This can produce inaccuracies at small details or T-junctions of blocks, which is prevented by enabling this flag. The drawback is that the BSP tree process will be affected, resulting in a slower level and possible visibility problems.
perhaps 6.31 doesn't have this?
someone complained about having to open a properties panel to apply textures... u didn't even have to do that in A5, let alone A6/7. if you're talking about applying to individual faces of a block, WED A7 can do this without having to open block properties... i don't know about A6.
don't worry, i'm not a WED fanboy -- i avoid using it and prefer model-only levels (usually). however, it is better than some people give it credit for.
julz
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Shadow969, tell me how you do it without .fx and i'll kiss you ^^
answer: the same way whoever made the scene in the first-place did it without shaders. and if they used shaders, why are you even asking? but whether they did or not, i've seen some awesome faked-fur with layered alpha-mapped models (in 3DGS). i can't remember who did it. but either way, the shader version is typically an automatic way of doing something you can do manually. (there may be other ways of doing it).
