Xenos doesn't have the current gen problem (actually, "last-gen", since G80 has the same capability as Xenos, being a D3D10 GPU) - it can resolve individual MSAA samples, whereas last gen hardware can't.
I guess that the "outlines on everything" effect is achieved by accessing individual MSAA samples at poly edges and determining if there's a surface discontinuity there (according to Z).
Jawed
But, didn't you think accessing the sub-samples to enable MSAA while using deferred shading is quite a cost? I guess I was confused by the term "deferred lighting" and "deferred shading". Maybe they were just referring to something else.
In case of deferred shading, I assume the basic scheme to use MSAA is like this:
1. Generate the geometry buffer with MSAA on and resolve it without downsampling for the purpose of accessing sub-samples. It needs more than one tile to finish the 4x sized g-buffer (let's assume it's 4xAA).
2. Run the lighting shader on the g-buffer. In the shader, you have to sample 4 sub-samples and run the full lighting calculation on each of them (because you have no info whether they are continuous), and then interpolate them to get one final pixel. That is, to some degree, turning the multi-sampling into super-sampling.