This is a demo about what? Of anything is about a stencil hack of a multipass technique to emulate branching of any shader model available on earth (not just PS3.0).
The thing is: it is a stencil hack -> useless. Everyone knows about this, just like eveyone knows for example that a RenderMan shader can be broken down on every hardware with PS1.1 capabilities (not regarding precision of course).
Since the stencil gets used, it is impossible to have stencil shadows on the scene... And what developer would have the trouble of writting a multipass tecnhique using stencil when he could just write an "if". Is like saying that a scene with a single light with PS1.0 supports HDRI: of course it does, it uses one light, so it doesn't overbright...
And haven't you heard? NVIDIA know supports 3Dc. Really, really. It simply doesn't compress the texture. And that means even better quality than ATI, althought I think NVIDIA implementation maybe by slower...
The demo is great, aka Humus style. What I enjoyed is the change in speach, like "Nvidia can consider themselves pwned." when he knows perfecly well that this isn't a replacement for dynamic branching.
Another thing I would like to know Humus is why did you forget to implement any kind of occlusition to the part where it uses branching. That does shift the results a lot because the stencil is the "occlustion"...
EDIT: yah, that is right: I registered just to post this... 8)