Yeah, I'd say this edges it from Flood which has for a long time been teh pwningest water simulator out there. The first shots of the ocean are unreal, as is the brown water flowing through the town.
Impressive that this was one pass, but there's no way it could be anywhere near real time. Solving the Navier-Stokes equations that accurately would whack it up into the "hours" band, rather than the "milliseconds". If it is close to real time, (and they're under 30) then there could be a Fields Medal waiting for them.
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Just realised, this is it. We finally hit absolute photo realism. Must be 10 years till it comes to games, 15 till it comes to handheld.