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I think the biggest hurdle with achieving the visuals we saw is the amount of actual human labor it will take. Covering scenery from all around the world is no easy task. Games like Battlefield or GTA, relatively speaking, create small worlds. This is also ignoring the amount of physical space these sceneries need to occupy on your storage. I guess that's what the "Powered by Satellite Data and Azure AI" at the beginning of the trailer is referring to. The computers are probably helping a lot in creating the pretty looking scenery we just saw and the humans just polish it up.

Why do you think the simulator looks like an impossible goal? Is it because of the graphics? This level of detail in computer video game graphics has long been achieved and running this level of fidelity can be done with reasonably priced consumer parts, you don't need a super computer.

A lot of people are skeptical about the the new Microsoft Flight Simulator's performance but I'm confident it's going to be the easiest to run flight simulator yet. Microsoft is releasing this Flight Simulator for PC and Xbox. If they want to get the game running at an acceptable frame-rate and resolution on an Xbox One (Not particularly powerful hardware), they're probably doing some serious optimizations to achieve that. Optimizations for the Xbox One version will reflect on the performance on the PC version. The most important thing is that Microsoft keeps the in-depth features of their previous Flight Simulators like FSX and FS2004. Given that this game is coming out for an Xbox, where the input method is a simple gamepad controller, they're probably going to make the game "noob-friendly" for the Xbox version, which I don't mind as long as a more in-depth version of the game exists in parallel to the "noob-friendly" version. That's my 2 cents. The trailer looks great and hopefully the final game will reflect that.