Off the top of my head, I see two (related) issues that aren't addressed fully by the video.
Firstly, how are the artists supposed to generate that much content? As they note at 2:55, they have more polygons in one cubic metre of dirt than in any game that doesn't use procedural generation. I assume they're expecting most of the content to be procedural or scanned? (I note that all the trees on the island look exactly the same. I'd rather have a variety of less ultra detailed tree, than one ultra detailed tree copied everywhere...)
And secondly, at 21,062,352,435,000 polygons in that island... this is going to get to the user's computer how exactly? And once there, it's going to get pumped to the graphics card how? There are some I/O bandwidth issues that appear to have been totally glossed over.
Still, looks pretty cool, even if the graphics shown could be made without this breakthrough technology (pre-rendered?). I'd be interested to see how that point cloud stuff could be integrated with physics, to allow a wind to blow the tree branches about, for example (calculation of forces between the atoms allowing the branches to bend and spring in a realistic way?)