I agree with bobat. No doubt it's nice, but there's nothing to get excited about because this may simply be a scripted real time graphics system. Just because it looks like the world is destructible, and just because the characters appear to interact doesn't mean there are any physics or AI systems controlling any of it. It may be no different than a cartoon, a CG movie or non-interactive video sequence from any other game, in which case it's just a bunch of pre-baked animations and effect...
PS3 does not use D3D it uses OpenGL. D3D (Direct3D) is part of DirectX and is owned by Microsoft.
There's really not much that can't be done without a specific graphics language or GPU hardware on a regular CPU (it's all just math and data). It's just a matter of whether or not you can do the math and move that data fast enough to generate the desired effect in real time.