Ghost,
I'll give you quite a bit of info here.
It's all about speed. The way shadows work today, with current 3D-cards, is that basically you have two choices - projected (can be extended to shadow-maps on GF3/GF4) and stencil shadows for realtime moving shadows.
Stencil shadows are ultra-sharp at all times and can be quite heavy on the 3D-card as they eat up fillrate and you need extended geometry to create them.
Projected shadows are the fastest as they require no 'extra' passes and no extended geometry. They can also be smoothed out to create high-quality soft-shadows. Only problem with them is when you can't afford to smooth them enough, or you're out of texture memory so you can't allocate them big enough - then quality can suffer.
NWO uses projected shadows / hardware shadow-buffers. It is the technique that has been used in professional renderers such as RenderMan from Pixar as so on, for quite some time - except this is realtime so quality is not yet as high.
For comparison, Doom3 uses stencil shadows - which are very sharp - same as Blade Of Darkness a couple of years back.
Now, shadow-buffers have the nice property that they can be cached (saved in memory) over consecutive frames, if the light or the receiving geometry does not move. That means that all the time needed for the 3D-card to calculate these buffers is gone - you just re-use the already prepared content.
The DVA engine employs such tactics alot. Everything that can be cached and re-used is. Think of it as DivX compression for games - instead of filesize going down framerates go up.
As such, when you use a healthy amount of lights and moving lights (flashes and so on) you get the most out of the engine. If you want to create a show-off map with tons of moving/changing lights then the DVA engine will only run a tad faster than anything else coming out soon.
Quality is another issue. You don't want ultra-sharp shadows, you need a little softening. Also, the 32-bit blending of current 3D-cards is a huge problem. NWO employs a ton of tricks to get 64-bit blending of lighting and textures.
Keep in mind that NWO runs pretty much as fast as Counter-Strike on a P3600 with a MatroxG400 or a TNT2 card.
To finally answer your question; when we see what we can get away with on medium-specs machines, we might move around more (or all) of the lights and the shadows.
Keep your eyes peeled for the showing of the realtime player shadows and you will see what this engine can do with shadows.
Jimbo
Termite