The Company:
Monolith

The Speaker:
Mike "LithTech Pimp" Dussault

Q1.
The Lithtech 2.0 engine and No One Lives Forever (NOLF is a working title) will most likely be using hardware T&L.

Q2.
The advantage is that we save a lot of CPU time by offloading the transforms onto the card, which enables us to draw a lot more things. The disadvantage is that hardware T&L on the PC is still in a primitive form, making it difficult to accelerate transforms for things like skeletal animation. PC rendering APIs are trying to add in support for every kind of use of T&L (like skeletal animation), but there's a big lag between API versions. By contrast, the PSX2 has a programmable chip (separate from the main processor) with dedicated memory, so we can write actual code to do our T&L for this chip, and you can do any form of animation and T&L you want.

Q3.
Lithtech2 and NOLF (working title) support S3 texture compression, bumpenvmap, detail textures, and possibly projected textures.