Earlier quoted context omitted.
The first version of Pianoteq came back in 2006. There are apparently some exotic mid-90s synths with claims of being physically modeled too, don't know how accurate that is. I currently use a raspberry pi with Pianoteq as sound output for my digital piano. It got a reluctant stamp of approval from my pianist son, although of course he prefers the physical response of even a poor acoustic piano.
Pianoteq is more like spectral modelling. The sound lacks some of the movement and bloom of a real piano. 90s physical modelling was a very simplified modular kind of modelling. Instead of analogue oscillators and filters you had "string" models, "pipe" models, various resonators, and so on. The models were interesting, but still quite crude and basic. This project is the most physical kind of physical modelling. It'…
I can tell the difference between Pianoteq and a real piano, but I can't in general tell the difference between Pianoteq and a recording of a piano. Maybe there's some insane level of hi-fi gear which would let me, idk? But in general, when it's good enough for Steinway, Petrof and my conservatory student son to give their stamp of approval, I think it's good enough for me as well :) quite a few of those insane things you mention you can already do with pianoteq's physical model (i.e. emulating a 20m grand), and I suspect they keep a few knobs to themselves to sell virtual instruments.