Isn't the minimum requirements like 512 RAM and a 128 MB direct 3d compat video card? That doesn't seem that insane to me.
The recommended video card is X800/6800 series, which is pretty high up there, but not insane. Then again this is all just in my opinion
Its supposed to be a pretty game, and I would rather turn down most of hte graphical options and play it than not play it at all. Bad graphics don't break a game for me (I've been wanting to play daggerfall), but good graphics certainly do add a lot to the game.
I'm really excited to see physics in TES and the new AI system they are using..