Klem - I think all recent ATI cards have tesselation built in, whereas it's only the lastest family of NVidia cards that have it.
You are correct, Oleg would have to program DX11 tesselation in the game, rather than using the LODs (level of detail) models which switch between models. That's why the Stuka (in particular) jumps in resolution suddenly when you approach it.
Tesselation is a way of offloading increased detail to the graphics card rather than the CPU. But as an NVidia engineer once said to me, at the end of the day the card eventually does a traditional triangle-lighting-pixellation render - it's more of an programming interface and work distribution issue.
I think I remember Oleg saying it wouldn't have tesselation, but I'm not 100% sure. I suggest to you that he'd be ruling out a fair number of NVidia users with older cards if he went for it.
56RAF_phoenix
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