Yes, it's as awesome as it looks. While Sonic Utopia may not fit the level design of a typical Sonic The Hedgehog game, it certainly does a lot of 3D better than SEGA has done in the past! According to the designer, the demo (which you can download here) is more or less a presentation of the things you can do in the game. There's no real beginning or end to the level just running through obstacles and messing around!

Looks cool enough for me to try out! Let's hope they make some real progress and release some stuff before they get sued!