I'm actually surprised that the uptake of this engine hasn't been greater. I mean, with UE3, Epic have basically pwnt every single developer who's using their engine onto their hompage. Yet Crytek haven't.
And as for the effects, the video is simply a demonstration of the engines capabilites. Some of the video is from Crysis, but most of it is from the engine.
With Crysis, the core gameplay isn't all the pwnass graphics, it's the effects such as volumetric lighting, advanced AI, owning physics and the advanced sound effects. This isn't like FarCry, you have to use your radar to find enemies in the vast and dense jungle scenery. The AI is [erhaps the best advancement. It's not BF2 SP "I can see you behind that wall" AI, it's "where is he, he's around here somewhere", and "oh ****, he's spotted me, get to safety" AI. I'm a proclaimed graphics whore, but i hate getting killed in a completely unrealistic way. With Crysis, i dare say that if they do shoot me, i will actually be like "oh man, i was owned by good AI".