When blasting a fireball? I'd like to be anywhere else except looking at somebody's eyes when practically a TNT explodes next to it.
Anyway, I think that if the U3-engine could be used for BG 3 it would spell only good things to the CRPG-community. Look at Oblivion. Looks good, doesn't it? Now picture that with having an argument about the best course of action eye-to-eye ith your mage, in first person view. And hearing the horde of skellies led by dread knights storming over the hills to attack you with 3D-sound. I like what I'm seeing.