LucasFilm Wants to Eliminate Movie Post-Production Process

I saw this posted on facebook yesterday.  What is it?

LucasFilm told attendees at Technology Strategy Board event in London last week that video game engines will be used in film-making, with the two disciplines combining over the next decade to eliminate the movie post-production process.

I'm not quite sure how I feel about this becoming reality.  On the one hand, it would be an amazing technological advance, to do film post-production work during the actual filming.  And what they do in this video just looks awesome.  On the other hand, too much CGI makes films look fake, and if you're doing CGI costumes and make-up in addition to the backdrops, etc., why use actors at all?

You can read more about the test at the Inquirer.