Does make you think though.
I mean, imagine this for a moment:
The scenes are completley and utterly realistic, car games look fantastic and photo realistic, action games look real, etc, etc,
yet, the physics engines don't match the graphics. Imagine how that would wreck how you play it and the way you percieve a realistic game?
At the moment, the physics almost match the graphic power, yet, I can see that how in the future, they wouldn't be sufficent as they are now.
So yeah, I believe this technology is needed
ABOUT CARTOONY GAMES:
Even with this technology, it doesn't mean jokey, cartoony games couldn't be created. These physics engines can be pushed alot, and so unrealistic effects could still be created, but more realistically.
For example, even in a cartoony game, you don't want objects passing through the floor, each other (usually anyway)