No one repeated the same line 20 times when you pass them and the towns felt alive. Very cool game.
I enjoyed RAGE quite a bit as well; however, the NPCs do repeat the same lines many times.
I kept going back to talk with Loosum or other NPCs in the towns near the beginning in the hopes that there would be some new quest relating to Dan Hagar's mysterious absence and no one ever had anything new to say. Not to mention, Skyrim's engine is equipped to handle thousands of NPCs, hundreds of factions, 550 unique locations, hundreds of quests, etc.
As for the megatexture tech, AMD seems to be gambling on the notion that this will be implemented in more upcoming games by incorporating hardware acceleration for partially resident textures in its new Southern Islands GPUs, so who knows if it might end up in a future TES game engine (although it seems unlikely considering the size of the TES game worlds).
http://www.gamesas.com/topic/1323793-amd-implementing-hardware-acceleration-for-megatextures/
http://images.anandtech.com/galleries/1601/PRT0_575px.jpg
http://www.anandtech.com/show/5261/amd-radeon-hd-7970-review/6