When and where can hardware tessellation really matter? - MachStudio Pro demo from IBC 2009

This demo from IBC 2009, very clearly explains how MachStudio Pro v1.2 uses the hardware tessellation feature on the AT FirePro v8750 to add incredible levels of detail using a displacement map - all without impacting performance. Hardware tessellation in this demo increases the mesh density from a few thousand to several million polygons - without any (as in ZERO) impact on rendering speed. Now more polygons become important when you use the increased number of polygons with a displacement map. MachStudio Pro uses the displacement map to physically displace the model vertices on the model surface to create new geometries. This happens on the fly, on the ATI FirePro card, so that there is no hit to rendering, including AO, lighting, and shadows