hedwards: Games have used them, C&C:RA used them IIRC, but in terms of using them for everything in a completely 3D environment, I can't imagine that happening anytime soon.
Amongst other things Voxels suffer from the same problem with regards to GPUs that raytracing does, GPUs are designed to handle and accelerate things that are convenient for polygon based graphics. Resulting in an immediate disadvantage before any technical aspects get factored in.
Yeah, there have been a few but like you said, they're rarely solely dependant on voxel systems alone. I forget the name but I remember looking into a case study of using voxels as a base for deformable terrain, and using either NURBS * or subdivision to skin over the top. Some surprisingly sweet results for a relatively cheap overhead in both cases, think suprisingly the NURBS approach sacrificed some detail but ended up being a lil bit lighter. The Voxel system in question was on a much less detailed scale though, more like minecraft chunks as opposed to the atomic level being discussed here. Whether it ould work under load in practice though...
I think even without the specifically tailored floating point GPUs (especially with the way CUDA and the like are progressing), an atomic level voxel system would simply too expensive when applied to games. The huge increase in number crunching for any sort of realistic physics system is likely to leave it dead in the water.... or your PC on fire :P lol
* (Non uniform rational B splines for the initiated, 3D point based curves for everyone else ;) )