The UE3 ' virtual displacement' is used only on static geometry (eg framed wall) ,never on characters ,because it would look very bad (problems :angle of view,self shadowing ,casted/received shadow ... ).
Now ,(and because i would fully agree with this reason )i think it's a mater of artistic choice.
The character models in UE3 games use normal mapping beyond anything SE has shown with their proprietary engines. I don't think it's artistic choice as much as a limitation of the engine.