Correct me if I'm wrong but isn't part of the RAGE (Id Tech 5) pipeline oriented around collecting artist actions akin to Kkrieger?
I always thought that was a bit of a paradox. You are collecting artists actions yet baking the end-result to a large unified data-set?
I probably misread that or something got lost in the chain of transmission.
This is really the crux of why Mega-Texture seems to be problematic compared to the standard tiled-texture paradigm. The re-use of texture tiles is "of itself" a form of compression. I wonder if any engines are more amenable to a diversity of very very small textures such that you are essentially using textures like different brushes in a paint app rather than traditional (larger) photo-source approaches.