Don't get me wrong it looks fantastic, but it hardly "trumps" Gears of War. Gears is already up and running. With multiple characters on screen and fully detailed and destructible environments. Not to mention it's running on less than final 360 hardware.
Project Offset is probably running on a high powered PC, of course it looks good... Can I bust down that brick wall... Is that other character thinking or is it just following it's animation routine?
Besides, while an "Epic Fantasy FPS" is certainly a new take on two different genres I never really cared much for fairies, elves and wizards. Give me aliens, robots, and mutants any day.