In the "first person standing in a room" demo, it's cool to see 100% optical (trained from recorded footage from cameras) graphics, including non-rectilinear distortion of parallel lines as you'd get from a wide-angle lens and not a high-FOV game engine. But still the motion of the human protagonist and the camera angle were 100% trained on how characters and controllers work in video games.

The goal is to eventually be able to model physics and all the various interactions accurately.

Sure, but if you're trying to get there by training a model on video games then you're likely going to wind up inadvertently creating a video game simulator rather than a physics simulator.

I don't doubt they're trying to create a world simulator model, I just think they're inadvertently creating a video game simulator model.

Are they training only on video game data though? I would be surprised when its so easy to generate proper training data for this.

It is interesting to think about. This kind of training and model will only capture macro effects. You cannot use this to simulate what happens in a biological cell or tweak a gravity parameter and see how plants grow etc. For a true world model, you'd need to train models that can simulate at microscopic scales as well and then have it all integrated into a bigger model or something.

As an aside, I would love to see something like this for the human body. My belief is that we will only be able to truly solve human health if we have a way of simulating the human body.