TheExpert:
Thanks for the nice compliments

Dabro0zar:
Your new image looks much better with this lighting. It has more depths and shadows. I like it.

Maybenew and Phemox:
I know that you are right. Model levels are the key for shader levels. But I see a lot of problems with this approach as well:

1) No scene management. Big levels are not possible except you program your own (slow) scene management

2) No shadows. You cannot use current shadow system for model based levels (at least not for indoors and even for outdoors you will experience problems). Shadows are only casted from the sun and you cannot enter shadow volume. So it will all look flat and false. Static shadows do not work on models and are not casted at terrain (currently).

3) Collision detection. I know several users complaining about collision in model based levels. Maybe there are work-arounds? Don't know.

My dream would be to create the complete level in Lightwave with lights, cameras and all materials. Then I export it via FBX into WED and Gamesutio creates some kind of visibility and shadow maps.
Vision3d works this way. Gamebryo works this way.

Another possible dream would be an in-game editor that deals with static and dynamic meshes and maybe blocks for portals and level optimizations. This editor could show particles, shaders, materials and whatever I need to create my level and to get what I see.

Unity-Engine calls it "you publish what you see" or "plug and publish"