"What other than thinking and acting like a complete fanboy?"
Nope. That's just passive-aggressive behavior to shut down an argument.
The game hasn't been in production that long and so far you've picked fault with everything. Literally everything. While it's true unreal can make a lot of things look amazing, that's the same for any game developer who puts the time and effort in. Those Shenmue screenshots alone show custom models, custom textures and so on. So, yes, while they probably did use the same process as that unreal video shows, it doesn't make it a good argument to attack the project with.
Just to clarify, I'm not a fanboy at all. I do however know how game development works and how it eventually all clicks together and I'm hoping further down the line, this will happen. From what we've seen, the character models and animations still look very rough, but intill we're actually close to release, I don't see why anyone should worry. Come a few months before it's release and let's say it still looks like this, then I'll criticise it.
"The simple fact is the very 1st Real time shot we saw of the Dreamcast Shenmue characters looked better than the current ones The characters demo's in What's Shenmue show eye's, hair and facial detail much better than what we have now and that was a demo back in 1998."
Yes, and do you know what the difference is between this project and publisher/first party ones are?
First party/publishers spend days, weeks even, setting up a seperate build of their project for a public demo or press events. Yu Suzuki doesn't have that money to waste.