The free version is quite capable. Really the only limitation that will have a possibly significant effect on your ability to achieve realism is the 3 population limitation, and this can be worked around creatively, depending on the scene. The detail limit of 1 is really not much of a limit, seldom do you want to use more than 1 in fact, and the AA limit of 3, while more restrictive, is still capable of achieving good realism in many cases. Vegetation will be more challenging with low AA, but terrain, skies, etc. do fine at that level.
Anyway overall the free version is quite capable of achieving highly realistic results. It's just a matter of practice. You can prove this in fact by downloading some of the completed scene TGDs that people have provided and rendering in your version. The results are identical to the registered version at equivalent detail.
- Oshyan