I've little problem with self shadowing only...
but to be honest, how much of a hog can it be? Flight sims in the mid 1990s had shadows. Nowadays it's soft shadowing with multiple light sources that fades naturally at a distance thats the rage...simple scanline
and the graphical improvment of them is awesome.
Just simple hard shadows, purhaps 80% opacity from a single light source and voila, would look awesome.
(Of course, I am not a coder, I'm a graphics guy...)
Also, is the aim of the source code project to make a game where everyone can crank the settings to max and get playable framerates, or to improve the capabilities of the engine? Because there are many people out there with ATI x850 graphics cards, and dua core 64bit processors with 2 gigs of ram, thats actually becoming the new minimum specs for next gen games. IMHO, the source code project should be making advances for those people, with the options of turning those options off for lower spec cards. older PC's are not capable of running next gen stuff, but that doesn't mean it shouldn't be enabled. (And as DaBrain stated, gives even the coders something to look forward to on an upgrade)
All that said, please don't think I'm nagging for it to be implemented NOW. Obviously, I'd be extatic if that were possible, but you guys are doing a GREAT job on updating the engine, like I said, I'm not a coder, but I DO know how much work it is. And I thank you for doing all that work!