This looks absolutely incredible. 1 million particles in a room? Craziness! The subtlety of the light bouncing off of materials is cool, and the illuminated particles has to be the most realistic looking thing I have ever seen in a real time environment.
The tool set itself looks absolutely incredible with the easy to use, sort of jump in jump out sort of thing. Now I am not a coder or programmer, but I have dabbled in complicated level editors and script editors. To see all of these changes being done on the fly makes me think that this will change the way developers will make games, and more importantly, the speed at which they make them.
PS: Dynamic lens flare 0_0
PSS: Here is the actual tech demo: http://www.youtube.com/watch?feature=player_embedded&v=OZmRt8gCsC0