This is what the engine can do. Obviously, only the best PCs will be able to use all of these features and not all will appear in Crysis 2.

But daymmm... its pretty.

http://www.youtube.com/watch?v=YHNWj8HmWwQ&feature=player_embedded#at=76

Except that no one ever doubted CE3, just Crysis 2's use of it.

Really i dont see anythinh goundbreaking that wasnt already included in Cryengine 2.
More lights and some Dx11 abillities... that was enough for a whole new engine - number? nah...

But in the opposite ... lets just imagine what a step Crytek made from Far Cry to Crysis... ( Cryengine 1 to 2)
and now imagine what a "real" step further, beyond the capabillities of the Cryengine 2 would look like...
Ladies and Gentleman: Photorealism 1.0

But why should Crytek put so much effort in a game or a engine when you must use a threeway SLI GTX 580 combo with a Core I7 Extremeto run this game maxed out @ 30 Fps?
About 300 Customers in the whole world would probably be able to run this.. and the final game would never be profitable at all.

From what ive seen Cryengine 3 runs WAAAY smoother than Cryengine 2. Now with real-time dynamic global illumination solution without any need to precompute, better shaders and better use of CPU/GPU... i just cant wait to test it all in action!

The fact that its available in all platforms ( And it still looks great even if i want a pc DX11 version in crysis 2!! ) just proves this. I agree that we will probably need a very good video card to play it maxed out in dx11 just like it was needed ( and even today ) to play crysis 1 at full but the idea is to push it forward right?!

----- EDIT-----
This is a tech demo video... I dont know if i would be able to see this inside Crysis 2. But in the video you have dx version and some specs about the computer used for this video ---> http://quicksavegames.com/blog/show/77?t=CryEngine+3+Tech+Demo

Really i dont see anythinh goundbreaking that wasnt already included in Cryengine 2.
More lights and some Dx11 abillities... that was enough for a whole new engine - number? nah...
It supports console now, that's a major change so it justifies a new version in my opinion. In the end it's up to them - Epic could turn the UE3 into UE4 at this point, but they don't, just like Valve and their Source engine.

But back to topic:
Except that no one ever doubted CE3, just Crysis 2's use of it.
Second that. That's the thing most people are talking/flaming about. And the gameplay.

i third that. what cryengine 3 can do, appears to be still awesome. but it feels wasted on a closed in city environment/ in crysis2. the actual location of a game IN a modern city....is dull! its not a type of place that can be considered "beautiful" is it, to be frank. i am glad other companies can use cryengine3, and i look forward to what might come of it, letting someone elses imagination run riot, cause crytek, whilst amazing coders technically, have lost the plot with imagination for an actual game. but it now takes the hardwork out of engine creation for certain others....

Be right back, I need to change my pants.

Look what Crysis1 can look like modded:
http://www.youtube.com/watch?v=shZzYkpl5Nk

Except that no one ever doubted CE3, just Crysis 2's use of it.
This^

Hmm, too bad they forgot to put any of it in C2.