“Because of the extreme complexity of certain shots these point clouds can still be over a whopping 300 gigabytes, and generating the same effect on these types of datasets is just not possible with ray tracing or radiosity methods, because of the higher memory cost.”
Wow I didn’t realize that what was done to create Speed Racer, Cloudy w/Chance of Meatballs, Tron Legacy, Real Steel and Green Lantern was “impossible” much less “not viable”. These all had full cg and/or photoreal feature quality rendering with radiosity, and no point clouds. They also didn’t need terabytes of extra drive space, hundreds of man hours debugging point clouds, and more, higher-priced labor, all for a lower quality result. Point clouds and ambient occlusion cannot match raytracing accuracy, and the difference would be visible to anyone if they were shown side-by-side examples.
You may think it’s impossible after listening to Renderman people, and that’s because in one context, it is true; using raytracing for everything in Renderman is not the least bit viable. The last time I tested it, rendering the exact same Maya scene in Mental Ray and Renderman, the score was (MR), 4 seconds and (RM), 17 … wait for it … minutes. A plain lambert shaded character with 12 raytrace shadow lights, no soft shadows, low quality settings, 1024x786. Apparently the latest version of Renderman is 4 times faster at raytracing, but 4 x faster than 17x60sec. is about 250 sec., against 4 sec. with Mental Ray, it has a lot further to go.
Renderman definitely has it’s strengths, it’s handling of tons of geo and textures, displacement and motion blur are hard to beat, but the photorealism is only ‘good enough’ to fool the average movie-goer - some of whom thought Beowulf had live actors. Just look at stills from the latest Pixar movie - do they really look like real miniatures? Of course not, and Pixar isn’t worried about that, they’re more interested in the overall look, and they do look great, and maybe that’s why they put reasonably fast raytracing on the back burner.

Raytraced images would look far more real. These look like paintings by comparison :