That would be so awesome. Imagine if technology/graphics got that good. . .

I think it would be very unique. If they could get martial artisits to do the motion capture for a specific character, then emulate their look into the 3-D it would indeed be awesome. However it is much easier to create the models from character design and then add the martial arts and styles. We'll see in the future though.

if they'll use unreal engine 3 i'm sure that graphically MK8 will be great.
I see Virtua Fighter 5 and it's good,so damn good looking for both characters and graphics(almost photorealistical),but it's not awesome.
Same for the upcoming tekken 6:good graphics,but nothing compared to Unreal Engine.Same also for Dead or Alive 4,one of my favourite fighting games of all times,good graphics but not photorealistic.
If midway can make 3-d models very very realistical(example,games such like Doom 3,Stalker,Prey,Quake 4,rainbow six vegas,etc) we'll have a sure masterpiece.
Howeve is also very important the gameplay:are we sure that a revolution can be "always" a good thing?