Sure, there's artifacts. But keep in mind, that one would not likely want to use such a method to render stuff with so much variation in depth, and one would be likely to use it to render natural surfaces which would not suffer at all really from such jaggies. You'd never notice jaggies on a rock wall for instance. And even a brick wall would still be rather noisy in terms of shape. These shapes here are very sharp.
The most amazing bump mapping. ever.
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