Yes , just little upgrades

hope Valve will develop Source Engine 2 faster
What you think about Id tech 5 ? is it good for Games like Skyrim ? i believe Skyrim with id tech 5 would be fantastic
“But there are some things it’s bad on. If you wanted to do the next Grand Theft Auto that had a city… It’s too much surface area to MegaTexture everything at the level of detail that you want to do. If you want to do a game that’s all about walking around with torches, our dynamic lighting approximations are not as good as you might want for something like that.”
“The MegaTexture direction gives us some big wins, but it’s also fairly restrictive on certain types of games. It would be a completely unacceptable engine to do [Bethesda's Elder Scrolls V] Skyrim in, where you’ve got the whole world going, and you’re walking across these huge areas.”
-John Carmack
The same limitations apply Unreal and Source engines too. You can force dynamic lighting but the performance and scale aren't as good. Portal 2 is pretty dynamic but there is a loading screen every two minutes.
http://i710.photobucket.com/albums/ww106/Arcipello/MirrorsEdge2009-01-1918-30-15-60.png
http://www.electricblueskies.com/wp/wp-content/uploads/2011/02/Half-Life-2-HL2-3-806x453.jpg
Amazing! But they are just not designed for TES/GTA style games with dynamic lighting and day/night cycles.
Cryengine
RAGE
4A engine
Frostbite
Avalanche engine
are impressive with their dynamic lighting. I point you in that direction.
Now personal:
I think Avalanche is the best. Great performance.
Worst is RAGE. Awful performance. Source and Creation engine are also very CPU bound. Creation has an excuse, Source doesn't.
My other favorites are cryengine and 4A engine. Acceptable performance levels, great visuals.