Did you see the 'Warehouse' demo too? It's not perfect, but it does have very nice lighting and shadows and runs at very acceptable speeds on my PC. I think if one were to add some nice models with better animation and perhaps additional shaders it could very well look even better.
Well I don't want to sound rude but imo the warehouse demo really wasn't a good example for the A7 capabilities. If you disagree have a look at that again:
And for a level that consists of only one medium-sized hall with not overdetailed interiors and except for that just some sprites or a skycube to fake some view the performance wasn't overwhelming at all...
Concerning the Torque video I have to say it looks nice although I also think the character isn't affected by shadows and light of the level. In addition to that there isn't much to show rather than an empty level and you can't tell much about the performance because you don't know what for a system was used to play this. But as it's only some kind of pre-alpha it definitely is looking like something promising...
