This is exactly what I was talking about in my impressions from GC. I have seen a long demo of exactly this and this truly shows what Crytek can do with X1 hardware.
And the full video, but sadly not incredible quality:
During the closed doors presentation i asked the dev if these test levels would make it into the singleplayer and he said they will be even better and the graphics will be even better too.
This should be posted in the news.