That looks phenomenal, makes me very optimistic about the future of gaming.
But how much story depth would be lost to get that? We've lost so much already. It's not terrible, I very much enjoy the game, but we all agree the game lacks consequences and choice.
Also I believe the games are built for consoles (Xbox 360 mainly iirc) then ported to PC, considering the majority of the market is consoles, that's who they need to please. Don't for one second believe the company cares about anything other than money.
Story depth ? That's work of the writer.
It depends on the talent of the writer,has nothing to do with the limitations of graphics engines and hardware.
Besides that,Crytek is also a company that wants money,and they also release games for consoles,but the PC versions of their games have serious graphics superiority than console versions.