FUD Zilla had a chat with Daniel Pohl from Intel about Ray Tracing and learned that performance scaling of Ray Tracing works really well on Intel's multi-core processors.
A dual-core processors gives twice as much performance as a single-core processor, a quad-core Kentsfield offers 3.9x performance, a eight-core processor will offer 7.8x and a sixteen-core system will offer 15.2x. Pretty impressive.
This is the way to go and sell more cores on a CPU. Daniel also showed Quake 3 Raytraced on its Ultra mobile PC with 1.2GHz core - solo and it runs in 20 to 30 FPS range. It can be done in low power devices and he has proved that it works.
Raytracing solves many approximation problems that developers have been using for years and it is the right way to go, but current graphics do not really score well on it.
It looks that the future has to be Raytracing, as this is what the movie industry uses and if you want more realism, it will have to happen. It looks that Intel will push for it.