Yes, the computational cost is ridicolous compared to the original game, and yes, it lacks basic things like pre-computing, storing, etc. That said, you could assume that all that can be either done at the margin of this discovery OR over time will naturally improve OR will become less important as a blocker.
The fact that you can model a sequence of frames with such contextual awareness without explictly having to encode it, is the real breakthrough here. Both from a pure gaming standpoint, but on simulation in general.