Stuff like this make me really skeptical (or cynical). It basically looks like a really nice "toy" or tech demo, but how much of this amazing stuff will get cut out once they have to turn it into a real "game" and their publisher has to mass market it to the most common denominator?
I can tell you right now that what they've got to show won't work for a real game system. What would be the point if you could blow your enemy up in an instant with a volcano or tsunami? They've shown how the world works, but they have not shown how your civ's buildings and units will actually interact with it and if it will make any sense. I'm sure heavy restrictions will be put in place and the events will be scaled down greatly by the time it releases.
In fact, it reminds me a lot of early videos of Spore. It was cutting edge amazing stuff, but when all was said and done, it just didn't jive with real game mechanics that well.
Something about it looks far too much like Black and White, but in a bad copied sort of way. A more malleable environment isn't going to be enough to sell me for Black and White 3. Now if it was touted as the spiritual successor to Sim Earth 2, with an evolutionary life cycle system, then I'd be much more excited.