He was talking about a techdemo (which is only available as a video on "You tjoop") ... not news or previews. Point is; News/previews/video's of techdemo's is all hearsay until that box is on the shelf.
Nah, I could see that the Crysis engine was gonna be good, even on low-quality-japanese-recoded-pasted-on-you-tjoop videos.
Unreal Engine 3 doesn't come close to CryEngine. it may have a lot of trickery to produce nice graphics, but it doesn't have that same shadow/lighting/texture/particle fx technology.