Thats pretty cool, however i dont think that was a particularly good example... PGR3 on the 360 looks very similar in refelections hmm. Maybe bad quality. You may find this image interesting, it used Ray Tracing, Now i can tell the difference between this and normal renmdering...
POV-Ray Hall of Fame: "The Kitchen"
You can see hundreds of image sentered in the IRTC (Internet ray tracing competition) here ...
POV-Ray Hall of Fame
I must say its excellent, and i should think we will start seeing the first games using this in about 2012 when the 80-120 Core processors are released (If intel sticks to its plans).
[EDIT] Just watched the video again, this time, I see it all, They are some really good reflections on the body work and wheel rims... Now we all just need £1200 for 3 PS3's.
P.S. This strains the CPU alot, how much does it strain the GPU processing the information onto the screen ?