A new video by Cloud Imperium Games shows off how they're going to tackle the problem of generating unique and physically realistic planets in Star Citizen, in real time. Every rock face, cliff, mountain and even the atmosphere are all generated based on actual models of geology and physics and using procedural generation.
In the video, the camera zooms out from the characters pupil, into the non-procedural generated base and landing zone, and continues to show a wider view of the overall planet, with procedural generated atmospherics that resemble the real thing, and presumably will physically effect your ship realistically as well.
Further out we see the rest of the rocky, barren planet and finally we exit into space. This is just a demo, a preview of what's to come with their technology. But if this is any indication of the progress being made, then it's certainly good news.