Yeah, it has very nice looking static environments. They're still static. If you kick the moss in the game, it won't fly off the surface and reveal what's beneath. You can't chop down trees, at least any way you want to. Even if you can pick up things, you can't pick up a pot, fill it with water and then make a pond somewhere with limitless repetition and patience. The nice looking areas have to be controlled as well; you can't have 50 helicopters with infinite ammo rocket launcher miniguns shooting up that place in the trailer without turning it into a slide show (or having the system catch fire). You can't even push a button and have the character take off his pants with a proper animation. There's still loads of ground to cover with graphics and computing power.
They do look lovely, though :p