I remember watching parts of this footage a year ago.
What they do not mention is how this is all a static environment. All active movement, especially dealing with physics and clipping, isn't really discussed. Some members of Bethesda mentioned this yesterday.
Which is a big deal, because what this is essentially doing is constructing an image of a place, rather than a character actually exploring an environment. At least, that was these dudes explanation a year back. They seem to have shifted away from that, and are trying to say it's still like a 3D environment, only not... but before, it was that everything was rendered as a full-screen image, rather than objects moving in tandem.
It's interesting. But yeah, it needs to have some movement in there to really be applicable, I think.