How are you going to fill a whole planet, or planets, with content worth experiencing?
Shit, I just had an awesome Idea for a game that gets around these issues.
Anyway, If you have good answers for the questions I asked, you've just designed yourself a game and should go and make it.
But in general the fact that the technology exists and no one has made a good game out of it should be an indicator that just being able to do a thing isn't the same as being able to make a fun game where that thing is part of the mechanics.
hmmm, seems to remind me of another game from a small developer wanting to do the whole "do anything" space sim. You could go down to planets and fly across them, drop off mining drones, ect. Epic scope. Had a ton of awesome technological advance for when it came out, the promise of it was incredible, with incredible graphics.
Scaleable LOD has existed for a long time it's used in almost every game, they're just applying it in a different way here. Something like tessellation would really help this come to life as well.
Its mostly impressive due to no loading because there is little to load, the space station was the only real model there, the planet was just a large heightmap which would have been randomly generated. There's nothing there to explore or do really.