Yeah, parts of it, looks like some of the environment textures were from the game engine.
There was a vidoc released shortly after that E3 that was a making of the trailer with interviews from Bungie staff. In that video it was stated that the trailer was basically the goal for the game, although at the time they seemed to feel very confident that they would meet those lofty expectations.
The fact that this is the second full game engine built from the ground up on the 360 by Bungie leads me to belief that this engine is going to be pretty amazing stuff, and judging on the trailer is pretty impressive. Just watched the trailer in HD again, looks gorgeous.




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