Keep in mind that the shadows (softshadows actually) artifacts are related to the shade-c tech (which is a betatesters version, not a stable one). We simply don't touch that code, but wait for havoc's next shade-c release (which was supposed to happen a couple of weeks ago but there have been several delays).

those shadows artifact are also due to the fact that the dust storm particles were not set to (softsprites) but simply gs default ones. I've just sent the code to Damocles for softsprites.

I like the new lighting Damocles has probably been twicking with today

As for the depth of field, not so true that it's only used in cinematics, I've played gothic 3 and there's depth of field during the whole gameplay.

I have no idea about killzone, i've never played it.

As for the video, I don't think we are ready for that, we have been able to import some new shader technology. It's there but it's not ready, we need to balance every single effect in that level in such a way that it does't kill the framerate.

Shade-c is "heavy" to digest, and that level has tons of entities all around.

Besides this is what we've been able to accomplish during our spare time in about (i'm pretty sure less) then a month.