yes in Crysis engine that's approximation.
let's wait for some demo of their game :
perhaps we will find some shader files to look at and copy.
i play Oblivion and don't know if it has the effect , but it's face designer is incredible
like i said when the game is like Call Of Duty 2 or others : you have
such lot of action and to be carefull at what is happenning that you haven't any time to notice if there is some sub surface scaterring or not
even mroe all ennemies, characters are in movement.
The real next step in 3D will be lot more polygons (not bump mampping)
for simulating real clothes when characters are moving.