The only thing that has not been properly done is atom modeling or whatever it's called, can't remember the full name but rather than having faces/vertices etc etc, the object is not hollow, if you get me.
This would require some stupid amount of power unless the tech they are talking about is a way to render it without cripplin' the system lol.
Pretty much voxels? It's been done
Outcast was a 1999 game, and wasn't the first to use the technology, absolutely outstanding at the time. It uses voxels over polygonal scenes to add curved detail and texture to the landscape. Even Crysis borrows a few of these tricks. Back when game developers were innovative and cared we got new rendering technologies fairly often, script writers and voice over actors less so

Destructoid article
It's on GoG for £3.80
http://www.gog.com/gamecard/outcast