It obviously does, they're definitely pulling every trick that's possible - otherwise the game couldn't look better then pretty much anything else out there.
Anything that you can't get close enough to will not get the same texel/inch ratio and the same polygon count. This means that you can build an entire city from the fracture of the texture budget of an interactive, free-roaming one. You also don't have to model and texture the back faces of these vistas because the player can never get to see them.
I don't disagree with you, I'm just not sure how accurate this is in the case of Uncharted 2. Yes, it looks stunning, but the smoke and mirrors can be seen nicely and to be honest, what they are doing is not out of this world, surely. For instance, there's a lot of clever use of bump-mapping everywhere. I.e. in Bormeo, the grounds that look very uneven with cracks in rocks and everything are in fact, perfectly flat (you can tilt the camera to expose them easily).
About not having to model and texture the back faces of these vistas - I agree. But how much of this is true in Uncharted 2? As I am sure you are aware, a lot of these places can be seen from a different angle. Without giving to much away for those that haven't completed the game yet - the city of Tibet is a nice example. While you are mostly in the streets, you get to climb up to higher grounds later and have a great view of everything that's outthere - even the streets that you have travelled before or the ones that you are about to. While I don't doubt that there are places that haven't been modeled since it wouldn't have to, I'm not convinced it is due to a technical limitation or limitation in the hardware the engine is running on.
That's why UC2 can use more unique textures and thus create a more interesting image, whereas open world games need to re-use the same sets of tiling textures which is boring.
Am I understanding you right in that case, that you don't believe that the engine already streams most of its data which could be used to make an open world game (assuming limitless budget and art-creation)?
Also, notice how many points there are in the game where you have to use your AI partner to get through some obstacle. Ladders, doors, etc. - but ladders especially, which are usually right in front of a viewpoint where you'd see those vistas. These events do add a bit to the gameplay - but the more important part is that they allow for several seconds of uninterrupted background streaming.
The engine can detect when it has to start the loading of the next chunk, and the player is obstructed for a long enough time to complete it.
True, though they - in most cases - also force the player to stay within a certain zone before the story has progressed or the battle has been won. We wouldn't want the player to leave any battle-zone before completing these objectives. Having to rely on an AI character is an obvious choice in this case, as the battle-field doesn't need to be changed (no wall that suddenly breaks that allows the player to progress) and it makes the whole setting realistic and believable.
While I agree that these areas could be used to pre-load data into the engine, it seems a bit unlikely to me, since there are enough other places in the game where the engine doesn't need to, to still pull it off. Besides, even once the game has supposedly loaded the data into the engine (during the ladder animation), there's no one stopping you to go back down and backtrack without causing any problems in the game. If what you are saying is in indeed true (that the game is infact loading the next segment), shouldn't this cause some problem if you suddenly start to backtrack?
It's the sane as when the first game forced you to slow down to walking pace at certain points, but this solution isn't as boring or annoying (and you get to watch Chloe's bottom and she even jokes about it).
GTA4 allows you to fly a helicopter to pretty much any point in the game world in any sequence, from any direction. AC allows you to climb dozens of towers per city and go to any place you can see from there. I can't understand how anyone can say that UC2 could do the same while maintaining the same detail through all its assets.
I actually agree with this, that the walking pace as a lot to do with how they pull it off. Having no running-button certainly helps. That's no reason why the engine couldn't handle an open world at these graphics though, as long as you stick to walking speed. Despite GTA4 boasting an open world with helicopter being able to fly relatively quick from one A to B, you'll find that even that engine has its limits.
Maybe we should really define what we mean under open-world.
My point only goes as far to say that I think the engine is already quite optimized for an open-world, but is limited to a linear path due to story and optimizing assets and content to the places you see and walk through. I have no doubt though that the engine could handle the cities it already modeled "open world style" as long as you don't mess with the walking speed or implement vehicles to expose the limits of the engine.