This reminds me of Lightstage (part of Cinema 2.0) for ATI's new 4800 GPU. ATI takes a slightly different approach to crossing the uncanny valley. They just capture all the data sets of the actual person and renders that person digitally.
http://www.youtube.com/watch?v=Bz7AukqqaDQ
http://www.youtube.com/watch?v=aT37b2QjkZc&NR=1
Personally, I believe both approaches are in PS4 territory, but I guess we'll find out, at least, by 2011. The future of game graphics look bright indeed!