This is pretty much how I though Unlimited Detail worked when they released the first demos with lots of repetitive geometry. If you have a tree, you can easily just make multiple children nodes point to the same subtrees. Technically the result is no longer an tree, but an directed acyclic graph (DAG). Trees and DAGs cannot represent "unlimited detail" without unlimited memory.
But how do you get the "unlimited detail". Simply by removing the acyclic rule, and by not having any leaf nodes that have null child lists. The children pointers of these nodes should instead point to another node that is closer to the "tree" root. This results in infinite repeated detail when zoomed in (slightly similar than fractals). Cycles in the graph do not cause an infinite loop in the raytracing algorithm, since the algorithm has automatic cut off once the detail is smaller than one pixel in the screen (each child iteration cuts down the voxel size by 2x2x2).
I like voxel rendering, because it offers perfect level of detail (no popping, memory access pattern that scales ideally when geometry gets further away), is easy to stream (like virtual texturing) and is easier to process (triangle geometry is just an empty shell and can have very complex topology).
Are you talking about this video ?
This video shows how well voxels handle LOD (especially those zoom-ins from above). There's no popping, no visible object mesh transitions and no disappearing objects. Every single small object is still visible at high distance.
However I dislike most of their marketing bullshit. The best part was when he tried to explain how their system is not heavily bottlenecked by seek time on HDD. And then introduced a "slow, 3$" USB 2.0 flash memory stick as an example. Flash memory bandwidth might be lower than HDD bandwidth, but it has much faster seek time. I have been testing our virtual texture system on USB 2.0 sticks, and the latency is definitely lower compared to HDDs (at least on consoles). This kind of marketing might be effective towards common people, but fail badly when used on technical people
That information about "keeping just one point of data in memory for each pixel in screen" is basically correct. However you need to stream data in as larger pages (just like with virtual texturing). In general voxel octree streaming is pretty much identical to virtual texture quadtree streaming. The biggest difference is that the data set has one extra dimension. Virtual texturing needs less than 100 MB of system memory to display perfect texture quality (1:1 texel / pixel ratio) for every pixel at 720p (basically "infinite" texture detail with fixed RAM footprint). I would expect SVO/DAG/DG streaming to utilize a bit more RAM, since 3d data has higher overhead (higher percentage of streamed-in page bytes left unused). But the difference shouldn't be that big.
Voxel rendering (including UD technology) is good for static backgrounds. Render the voxels to g-buffers (deferred rendering), and the data goes though the same GPU based lighting & post processing pipeline as rasterized data. That allows you to combine it with moving objects (and moving light sources). Shadow mapping however might be difficult to do efficiently, but you could cast secondary shadow rays directly to the voxel acceleration structure (just like most triangle ray tracers do)... but as with any ray tracer, it's the secondary rays that (likely will) kill the performance.
But id-software did release a game (Rage) that had all the environment lighting (and shadows) baked in their virtual texture. It's not out of question that someone could release a game with voxel geometry and static (baked) lighting + shadows. Add in some dynamic (non shadow casting) lights, and it could look pretty good.