Those screenies kinda reek of "Shenmue" syndrome to me... With any graphics engine, you can always come up with 1 or 2 screenshots that show off the best-looking possible case for the graphics engine, and render them at super-high resolution with high AA/AF. That doesn't mean the game will look anything like that.
Honestly, the lighting looks like crap. The flames don't seem to light the monsters properly, and the shadowmaps are excessively soft... while that may be great for outdoor / brightly lit scenes, it will look a lot worse for dynamic lighting, as seen in the "ogres/torches" scene. The only remarkable thing about the graphics engine is the disgusting amount of texture detail involved... they're probably using multiple layers of detail textures.
I'd be willing to believe the framerate never dips below 40 FPS, assuming they are talking about lower resolutions and no AF... in which case, the shots would look totally different; since the ultra high detail textures wouldn't be as visible.
I think it's highly unlikely that next-gen consoles will have graphics like this. The 640*480 resolution and limited memory systems of a console make it difficult to make things look good simply by using more textures. The advantage of consoles over PC is in shaders, and I don't see much usage of that in these screenshots; instead, it banks totally on the traditional PC advantage of high resolutions and texture detail. Instead of going for ultra-high texture detail, next-gen console games are more likely to be about superior lighting effects; we'll be talking about sub-surface scattering, correct soft shadows, correct ambient lighting, caustics and light bleeding. (not sure when if any of these will really be possible... but you never know)
