Looks pretty good. Very realistic in places, when it comes to the characters and some indoor shots looked like a standard interior visualisation like architects use.
Most of it seems to be layered with shaders, bloom and HDR.
Running on lower systems, its possible. But the sort of things it is doing is not something you find in any other game but crysis right now and that alone has high minimum specs. Can't really tell much from the video though at its quality.
But then, some effects are possible on low systems. You can fake bloom and HDR, the ps2 has games that do that, just never really been used in a PC as you can just upgrade it.
Now, the textures and models, they canbe nicely detailed and run on low systems, they can be coded. there is this game that is under 1mb and is completely coded, yet it looks really good, full 3D, lighting etc.
Infinity engine also uses coded textures, to create seamless, endlessly unique textures. You can run it on a very low graphics card as it uses no texture memory, just the CPU to render it.
Haven't read up on the engine, but could be likely what it does. Though you just need a good enough CPU really. Which most people may have by the time they release it.
If it turns out to be a myspace in 3D and like the other virtual world, be pretty boring if you have to pay for anything. Dancing, chatting, a few other activities, is not really fun if you got a stunning 3d environment. EU should still have a firm place in the industry, since its much like an RPG game rather than virtual hang out.