I think that Bungie wasn't exactly lying about how H3 was the engine and that's how it was gonna look. Of course they gussied up the Chief for the trailer, but when it came to game time, they undoubtedly had to remove all the speshul effects and high-res-ness for performance reasons, but if they still had that model set up and they threw it in somewhere, it would probably look the same. In Halo 2's case, that was an outright lie; the engine you see there was scrapped entirely.
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