It's the camera movement and fish eye lens that makes it seem somewhat real, it's a mildly impressive demo. Put that game infront of any seasoned FPS player and they'll be spinning around and looking all over the place, such that any sense of realism is gone in 5 seconds. Many games look nice and have a sense of realism when you slow down camera movement, it's just usually detrimental to play that way and not at all a representation of how you'll be playing the game.
I was wowed when i saw MK (finish him!) and SF (hadoken!) for the first time, i'm easily pleased. Gameplay > Graphics ..