Well, I don't know about terrain, but the E3 demo was, just amazing. Starting with a 200,000,000 poly mesh to turn into a 1,000,000 poly scene, with the amazing lighting U3 has. And it's far more than just graphics. The physics engine has largely been built, and is also quite nice. If you really want just a sample of the power of this thing, check out the E3 engine demonstration. If nothing else I know they got it on Fileplanet. This engine will just be amazing. And for those of you who don't think it'll run for any normal thing... well, this tends to be a priority of Epic. They want as many people as possible to be able to run it. One of the reasons they included an optimized software renderer into UT2004. I've heard of a few good game companies already saying they'd use the U3 engine. But, anyways. It'll most likely run decently well on midrange computers. As was said before, most of the models are actually relatively low poly. They use a form of difference mapping, virtual displacement, and some other tricks to make a few polies appear to be far greater. A wall of maybe 100 polies made to look like it's got a few thousand, for instance. And what generally takes up the rendering time is polies. So this probably will run decently on an average computer (it probably will require at least a 16 mb 3d card, but I can't imagine that Epic would require more out of a computer, except if you want maximum quality)
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Wolf Moon
Cast Your Spell On Me
Beware
The Woods At Night
The Wolf Has Come