Don't forget, it is also directed at the XBox which is a notorious closed environment. MS are not going to have two dev streams; their normal modus operandi is to develop for the XBox and then port to the PC.
I'm in agreement.
The first thing I notice, is that the font is exactly the same. They sold the game to Dovetail, but apparently not the name of it, "Flight Simulator." That could cause some brand confusion. Significant to me, because MS is fastidious about erasing logo's and endorsements that do not directly serve their interests. To me it implies that they feel like they've lost the prominence they deserve in the flight sim community and they intend to repossess the success that it took Dovetail to generate.
To me, the scenery looks a lot like that LIDAR/Google Earth stuff. I am picturing a system like FSET and then they run it through the Azure filter to standardize colors and add geometry.
In the view of the San Francisco Embarcadero, you can see an odd "sheen" around some of the ships. The zoomed in dock in the upper left reveals that those are likely 2d images of ships on the water, that have been obscured and covered by what are almost certainly, default models of fishing trawlers. The lowest one is clearly the outline of a catamaran, the hull design of the boat that actually parks there. There are no fishing trawlers on the Embarcadero, those boats tie up over on the other side of Pier 39. The area depicted is the ferry terminal area and those docks secure ferries, charter and cruise ships, as in the image below showing the "Hornblower" charter yachts. So maybe a little more machine learning for the Azure neural net, but whatever.
Moving to the Space Needle, we see more evidence of the LIDAR type rendering, the trees in the lower left never resolve beyond indistinct blobs and the cars in the parking lot, strongly appear to be 2d.
Beyond Microsoft's trademark of whitewashing every possible endorsement they haven't sold, this scene looks odd to me. The greasy "shadows" make it look like the details are superimposed. Those generated shadows make a nice effect at distance, like over by the baggage carts, but up close, the two ramp workers look pasted in. They also look like they might be identical to any two in the group of three.
The render quality between the two jetways is remarkable. There seems to be a render "focus," at the center of the view and the quality drops toward the edges. You see this in the jetways, you see it in the trees by the Space Needle and you see it in the render of the red condominiums in the Embarcadero view - a kind of conservancy of render resources.
I do not believe I saw any tiled, or "class" scenery. The video showed many quick scenes, that changed with the beat of the music. Not a lot of continuity, but an amazing variety. Two scenes happened in quick succession, The quick glimpse of Courchevel, which appeared to rival the quality of the best addons of the area and right after that scene, the A320neo had visible heat distortion, behind those optional new engines.
Going back to Courchevel and The Pyramids and downtown San Francisco and downtown Seattle and on and on - altogether some heavy scenery, a gig or so at least, for each one to be properly represented - by current standards. If the simulator were made solely from the scenes we've already witnessed, it would be too massive to ship. Bandwidth appears to be the new bottleneck and if you live in the sticks, you might as well get used to gliders.
I see little stoke for developers here. We had our chance to pay homage to the altar of MS and we telegraphed our loyalty by mobbing to the steely eyed indifference of LM. Imo, "community provided content" was a way for MS to say, "we gave you the whole world (20% or it) and left the details for you to fill in! - and then they watched on, in horror, as we loaded the sim up with every cross endorsement we could come up with. Developers even got their own, fictional communities, that enthusiasts would glom to and spend money on. Did anyone model MS headquarters? Turn that into some sort of flight sim paradise? No? Ok then, lesson learned.