I think so too but the only alternative im hearing is that epic is so incompetent that they didnt think about any scenario outside of showing off a pretty demo.
I think its a silly notion on the face of it. Hence my earlier sarcasm
I think that there will be a happy medium in graphic quality and storage needed that will look very much like the same quality except at zoomed in levels.
Epic wanted to show off what there tech could do for all there customers including non game developers.