I don't think you quite understand how it works then.
Firstly, why is adaptive tessellation OFF? It should be ON (in which case
the tessellation factor would just serve as a maximum (or an average), and not a constant).
It would be much like AF... why bother setting it ton anything lower than 16x, when the hardware will figure out how much to use depending on the level of anisotropy anyway? Most of the scene is generally done with 2x-4x AF, so going up from 4xAF to 8xAF or 16xAF will generally have little or no impact on performance... It just puts the finishing touches on your image quality in those few spots where you need it.
Secondly, the amplification factor depends a lot on what your source geometry looks like. On one extreme, tessellation can turn a cube into a perfect sphere, but you'd need quite a high amplification factor. When you are using more complex geometries, such as human characters, you will generally need more detailed source geometry, so in that case the level of amplification to get pixel-perfect detail will be relatively lower.
It all depends on what you're doing.
Look at how Unigine works, for example:
http://www.youtube.com/watch?v=bkKtY2G3FbU
Look at the wireframes. You'll see they're low-poly when objects are far away, and when you zoom in, the dynamic tessellation kicks in and starts adding detail progressively. Without the wireframes on, you don't even see it happening, because unlike traditional LOD techniques, there is no 'popping', the geometry just smoothly 'flows' into detail.
So your teapot with static has two problems:
1) It uses too much detail on the top, which we can barely see from this angle.
2) If we were to zoom in very closely on a single detail, it would still have a faceted look, because it does not progressively add triangles to smooth out the geometry (which is exactly what tessellation should be doing).