Your post started out really well. Too bad the last paragraph had to show your preferences. The engine here is amazingly innovative, both for visual fidelity as for developers. The fact at this point is, that we do not know how it runs on the XSX. To attribute this achievement solely to the PS5 is premature.
And if you can't see the obvious partnership between Epic and Sony here, I don't know what to tell you. Epic is trying to make their own engine look as awesome as possible so that it gets wide adoption. Sony is trying to make the PS5 look as powerful as possible, so they sell more consoles and games.
If say Crytek would partner up with Microsoft and Xbox, the same thing would happen. Talk about the velocity architecture, the breakthroughs that MS made, advantages over PC, all of those would be brought to the forefront.
It's not that they are lying. They are using words in a way the emotionally hype up the masses. Look how many people think that billions of triangles are being rendered in the demo, while in reality it's around 30 million. People latch onto big numbers and big words without understanding, and then the false understanding spreads around, creating unrealistic hype. And that ultimately sells.