I made a video of the current build, Beta City. We have been working on it a while...
Most of the lag is created by me running MSN and the video capture software, but the city is beginning to lag noticibly, well, when you look at the framerate numbers anyway.
http://www.bjwaymods.net/uploads/retail.wmvThis 16MB file is 2:40 long. You can see the blink and undulation effects being used, as well as a few others, if you look really hard. The first 10 seconds are of the start mission GUI, because I just downloaded this recording software, and I'm still learning to use it...
Also, with the new way bricks are rendered, I have no clue whether streaching or building bricks inside other bricks is even possible. You might not even be able to place them inside eachother, because they might disapper. You would have to take out the code that hides the faces that are not shown, which would make the new brick system pointless, and decrease the number of bricks you could place over all.
The reason RTB had build in bricks, was to fill in the holes in the arch bricks, I believe. That isn't a problem in Retail, first of all, because there are no arch bricks, and second, because the one wierd shaped brick in the game, you can build in the gaps without getting a brick inside brick error.