The objects and game code would be the HTML and Lithtech the browser. Servers would be connected together and players could play in a virtually infinite space. I think in a couple years image quality won't be the hot topic anymore. We've seen a dramatic increase in 3D acceleration in the past couple years that will only continue, but processor speeds aren't keeping up. That's not to say people won't be astounded by cool graphics, but I think it will be things like enormous landscapes with a lot of interesting things happening, not the fact that you're running at 2048x2048 instead of 1024x768.
Sanity has many genres mixed together, it is a very difficult game to fit in one category.
You do not get experience points in the game or have character levels. You will not be able to create your own talents as the game is released. As mentioned above there will be many ways to collect new talents for play. I think that the vast number of multiplayer options available in the game will be a big hit. There are several game modes available, tons of skin and weapon options and some really cool levels to run around in.