Meh, these guys are still stuck in the uncanny valley. Objects are often absolutely beautiful and realistic, but interactions between objects are ridiculous. Some of this is probably just "not enough processing power", but it is also due to where the rendering bumps up against the primitive controls. For example, you have a very realistic human. But then the human walks against an object, and she does this standard v…
Still impressive technically and visually. Let's not forget that these things are running in realtime, they aren't a video. the whole "uncanny valley" thing is exaggerated. in the next 5 years you won't be able to tell the difference. In fact, you're brain will be constantly asking itself whether what you see is real or a 3D model. And I bet it did if you played the demo. That's a serious leap forward.
Now most videogames will still featured heavily stylized/cartoonish models, because some people are afraid of models being too realistic.