Here I have to agree with Frank, the engine really is a wow. The tech demos purpose is not to show a full functional game, it has to focus on the TECHNOLOGY. (though as TheExpert said, the demo left us without animations and physics in general, but I think the developers decided to focus on graphics this time...)

And Matt, you know yourself much better than most of the people on this forum that photo realistic material is a matter of art with engines like this. What the engine "looks like" is a matter of art as well. You can't expect photon mapped fairies from every engine...