id Tech 5

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Those guys are geniuses :)
This is the technology I used to dream of before I realized I suck at computer graphics.

It's interesting that they have very little worry about geometry detail. They did the same with Doom 3, where the actual meshes were pretty basic but all the fancy (and then-new) effects made them seem enormously detailed - way more so than is often achieved even today.
At first I thought it was a bit foolish to have the focus almost entirely on materials, but with Doom 3 in mind I expect this will be very surprisingly nice.

I guess the focus on materials means less physical interaction, but interacting with puny objects like newspapers is pretty pointless anyway... and it would be very expensive to have something like a newspaper moving at all properly.
Their demos definitely do not showcase as much fluid interaction with the world as we see with Crysis, but for pretty art done quickly, there is a place for this.
I think it is premature to be putting this engine against those others since its direction is really quite unique.