There's no way "true" real-time radiosity is possible yet (and I don't think it will be on silicon-based microprocessors).
I have seen some hacks that use cubic environment mapping for a similar effect, but there's no way they can approach the impact that true real-time radiosity would bring (Similar to how no other shadowing method will match the more-or-less true shadowing that DOOM3 will bring).
As for real-time raytracing, I'd certainly like to see it. There's simply no way to really do good water rendering without raytracing (Components needed for good water rendering: reflection, refraction, angle-dependent reflection/refraction ratio, light attenuation, and lastly lighting of nearby surfaces based on reflection/refraction at the surface of the water). You can do every single one well except the last two by using tricks on today's hardware, and even light attenuation can be approximated fairly well.
As for whether or not it'll be viable, I don't know. I think it would depend on the scene, but I don't see any reason why it couldn't be done, though you wouldn't want to attempt real-time raytracing on scenes that involve lots of reflections and refractions.