Well before critiquing the demo too much , Lets all load our included gamestudio demo , then see the video of the demo again , so we can compare. LOL.
I'm not saying the vide is the ultimate thing i've seen , I would say for now Crysis is the winner in that category , it definately looks incredibly nice , As if it can be done with gamestudio , yes , it can , we all know it can (or at least pretty close), the biggest problem i have with gamestudio and shaders is the lack of fallbacks and such , where if you get a shader from the wiki , and build ur level with it , it might not work on the next guy's computer , and fixing that requires a lot of programming that general users like myself arent really familiar with. It was the same problem with Sphere , it was a beautifull plugin , and really made gamestudio look like a next gen engine , but in the end it became unusable because of it's lack of support for wide range of video cards , it's many bugs , and lack of fallbacks. I'm not saying gamestudio is too behind as an engine , but as a tool , specially as a tool geared for the non programmers (i.e. the artists and hobyists) , still , I do believe that making a level like the one in the video is possible , the question is how much extra work it would involve to put it together with gamestudio than with torque , as from what I see torque has a much more robust and userfriendly shader system than gamestudio , with a very nice fallback system so your shaders are backwards compatible all the way down to shader model 1 , which was the point of my post.