No it wouldn't not that much anyways. As a developer myself and work in 3d all the time. The characters are "instanced" and then loaded and modded independently. this is a massive memory save and I am surprised that this wouldn't be standard practice. Instanced is kind of like a visual empty object that can be manipulated. It may do a performance hit in the software to make it, but when playing, with how he said they are loading them, they shouldn't really have problems.
Remember, Conduit, grinder and so on are all about selling an engine, so if they can push it, they will. There are a lot of sweet dirty tricks you can do in the 3d department, it just matters if the developers can figure out how to make it work correctly in their own engines.
Its all good though, The Grinder is showing off how the engine was modified from the conduit (play and quality) for FPS to a Left 4 dead style game. And of course the engine was also modified to fit their gladiator game (also FPS, in 3rd person). So while the engine can do all sorts of FPS style games, I wonder how if it can be "modified" to a complete different genre well? im sure it can, but i wonder if they have put in the fuctionality yet?
So what other games on the 360 or ps3 (hehe just kidding bout that ps3) that are in the FPS genre that people thought couldnt be tackled on the wii and I am sure we may see what the 4th project will be. (unless said modification comes out).
Just for comparison reasons.
The Conduit = Halo = High quality FPS
The Grinder = l4d and dead rising = Massive amounts of enemies on screen
Gladiator A.D. = MK = blood and gore is possible with HVS, not everything is clean.
Looking at Gladiator (from the first fuzzy screen i thought weapon lord (anyone else?) it has to be (for me anyways) the most generic title they have announced. But, I think this title is more designed to show off the graphics of the engine. In such a contained environment, HVS should be able to do all sorts of wonderful engine trickery.
Ahh, im babbling about.
Get the engine where you want it HVS and then release it so that other companies can utilized what you have put so much time into.