, I remember seeing those pics when they first came out...a while ago, wasn't it? You're absolutely right...more games should support EMBM, especially now that most modern cards support it. Seems a bit pointless leaving it out when it can add so much.
As for water effects, the most realistic looking water I've seen to date is in this pic
from the game Chrome. Good reflections, and detail of the ground under the water at a close distance.
I know that rain is confirmed to be in the game (along with fog), but they didn't specifically confirm snow. I know it's certainly possible - they had a nice snowy/icy level in SOF, for example. As for rain on water...it's the first I've heard of that for JKII. I know they've got that effect in Morrowind.
As for things like waterfalls, or water spilling out of pipes, etc., who can say? If those are in there, I hope they've done a similar job to H2 (and the new Unreal 2)...where the water comes out in an arc...not just straight down.
I have to say that water is one of the things that is rarely done very well in games, probably because of it's complex nature and the technological limitations of the past. Refraction, reflection, shadows, seeing the bottom up to a certain radius...then the mirror effect, water ripples, distortions, raindrops (and other things) falling on the surface... Heh...it's a veritable computational nightmare. And that's before you even go under water...
When a game finally delivers realistic water effects, I'll be very, very impressed.