Thanks for your valuable input...
I wouldn't expect anything more than what games like Final Fantasy XIII had, and that is expecting a lot. What we'll see is probably a higher-res version of what we saw in Oblivion that also bends alongside the skeleton, allowing players to have hair that drifts below their neck. It won't be "special graphics" or anything that technology will bring us in the next decade or so - graphics that are designed primarily for a feature like hair. It doesn't even matter what the most powerful PC is capable of doing, games won't do what consoles won't do, and new consoles don't arrive until 2012 at the earliest. When E3 comes around, we'll all get to see some new games due for the next generation I'm sure, but Skyrim is not one of those and I won't hold out any hope.
Video cards will naturally get better. Lately, Nvidia and ATI have started new lines of dual GPU cards - essentially two cards in one. With two Nvidia GTX 590's, you essentially have four 480s like the tech demo showcased. Cards after that, maybe a few more releases from now and you'll have all that power in a single card. Nvidia said it themselves that the 590s are for "über enthusiasts". You won't see games that require that kind of power anytime soon because only fanatics would build rigs like that. Those 590s are
the best you can get right now, and you'd need a power supply capable of powering a city block and a cooling system colder than the arctic just to keep the things running.
Also, I saw the computer running that realtime render of Unreal at PAX East. That behemoth made an area around it in a 10 ft radius heat up about 10 degrees. I feel bad for the Nvidia booth there that had to deal with it