Almost all game firms could learn a thing or too.
[/queue rant about procedural textures being horribly underused

]
But yes, this is it taken to extremes.
Very impressive and effective stuff.
Even though allot of the art assets are a bit on the ugly side. But I'm presuming that since everything has to be coded (due to size restrictions) there's only so much the art guys can do?
Yeah, its pretty much code all the way.
However, if your willing to have
slightly more filesize, theres tools like this;
http://www.theprodukkt.com/werkkzeug_3_te
That lets you build/layer up textures nicely without needing coding knowledge.
So as far as 2D materials go,art guys can certainly still help with procedural stuff.
Theres also this (old) article about another procedural texture specialist firm;
http://www.bit-tech.net/gaming/2006/11/ ... ture_Gam/1
They are focusing on tools for downloadablys, Live Arcade and such.
3D however, is another mater. I guess in theory you could have 3d modeling done a similar way. Building up from a cube and keeping the modifier stack?
Be quite tricky I think, and not sure the benefits would be much if anything. Mesh's don't take up nearly so much as textures.