That's from 1997!? o_o
Don't be so surprised, lol.
It was an engine stress test. The reason you don't see things like that in games of that era is because of the technological limitations at the time. It
could be done, but it's kinda like the extreme ultra mindblow ape-dung-flinging A+ dazzling 25-mod 3FPS Skyrim. You're able to do it, but the hardware isn't advanced enough at this point. In the future, that kind of thing will probably be standard for a game with good graphics.
That's just my educated guess though.