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Actually, there is proof of this being real-time. There is another video out there where the developers are messing around with the tools of the engine and making changes to the demo in real time, such as changing the style of that old man's beard, and the color of the cult leader's beard, then continuing the demo at full speed with the new changes just a second later.
As for a personal bit of guesswork, I'm going to guess that this demo can run at 30fps on two of three GTX680 cards. Remember that the resolution of the demo doesn't looks like more than 1280x720, which is a very modest resolution for video cards like GTX680. Increasing the resolution from 720p to 1080p in that youtube window gave me no discernable change, and I have a pretty good eye for that sort of stuff.
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Aye, when they started moving the camera angle manually during the other video my mind was blown. xD
As for what it has to do with FF - not too much, although I'm fairly certain it was stated at some point that they wanted to give an FF theme/feel to the tech demo, which I personally think they did successfully. Being shot at by soldiers while you control someone who relies on magic, has healing abilities, carries around a crystal and does a summoning. Meanwhile the soldiers who were shooting at you unleash one of their super-dogs, which is a common thing amongst FF enemies (soldiers and monsters working side-by-side, often dogs). And then there's the whole thing with starting off in the slums and then having the wonderous revelation of the rest of the high-technology world.
