Insight into the Playstation 3's graphic ability

Apparently the tech demo this company gave of what they could do with the Playstation 3 actually had people looking away due to it being too graphic. You don't get to see anything too crazy and the company, Kuju Entertainment, even noted that this may not be possible in their game, so far dubbed "Redwood Falls", but since Sony is still maintaing that the PS3 is coming out this spring, we should be getting some in-game examples or demo any day now....any day.