I haven't seen this.
That's the way it's been done since like forever. Definately SSAO > no realtime AO.
Those look like regular poing lights
Also, U2 does have proper GI, even if it's just static (though affects dynamic objects).
Well, I don't know about the soft body physics, but when it comes to scale U2 has some very nice vistas. Also, apparently (according to the responses I got on the tech forum) a large moving level doesn't seem like a big deal. Let's also consider texture resolution and variety, both strong points in U2, not so much in GoW3. Oh, and the sub surface scattering as well