It is the answer for most offline rendering issues.
There are cases where higher level of proceduralism is required (like L-ssytem based foliage, hair and so) or for most visual effects depicting fluids (smoke fire water etc). But for characters, environments and props, subdiv + displace is doing very well.
So what about doing it in real time? I know a few games have used it in the past but to rather poor effect visually. Do you think current hardware is at a level it would be able to pursue this or is there still too much geometry and not enough processing power and memory and bandwidth we need?