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It sounds like your nostalgia is making you biased. That video of Trine 2 earlier in the thread proves beyond a shadow of a doubt that today's realtime > 1997's prerendered in terms of fidelity and detail. Watch it in 1080 and then look at a gameplay vid of Abe's Oddysee. I don't think you have anything to be worried about.
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I don't agree. I haven't played/looked at the whole game, so possibly other sections are different, but my impression from that video is that it shows high level detail, but only in close quarters. There is always a solid wall or cliff-face close behind the characters, blocking off any distant views. For me, the epic vistas are what made AO and AE, particularly in Paramonia and Scrabania. If you could only have a short draw distance, I'd be very disappointed.