i'm not sure what your point is
the tree's are standard billboard sprites with additional texture'd heads ... and ofcourse the water is pixel shaded, whats your point?
the most spectacular effect at the cheapest cost... especially when dealing with huge ammounts of detail.
If you need a better example of this kinda setup then look at Black & White - that game can look outstanding until you get right upclose to certain aspects, even then the artists and programmers have done well to keep the flow great and the content to a level which allows even the slower of systems to use the game.
No small feat considering that Karma (aka MathEngine) is actually pretty demanding upon the system for that realistic movements ... along with that pretty advanced Creature Ai
Anata aru kowagaru no watashi!