I agree, it is a great challenge to make objects merge nicely with the virtual enviroment, but it is interesting to hear the military doesn't want shadows, perhaps they plan to engage in combat always during noon? Catch the enemy while they're having lunch.
Lionhead's latest games have quite decent shadow effects but those are much simpler games, very distant from sims, and far more devoted to eye-candy.
While good graphics are always welcome (SH3), the best strength of this sim is definitely the realism, it's like Dangerous Waters on land, but better.