The two images here are from the HW55ES. They will shortly be replaced with HW65ES comparison images.
Reality Creation is the most impressive of any of the "dynamic detail enhancement" features I have encountered. Essentially, Sony's Reality Creation looks closely at many aspects of the image, frame by frame, and enhances the image as it sees best. It's could be the smartest of programs designed to increase the perceived details, crispness and pop of the image. They all work somewhat differently, so each may have strengths.
For example, Reality Creation apparently treats different subjects differently. Just as red-eye reduction on a camera knows it's looking at eyes, Reality Creation knows when the image contains a face, and will process that differently than when processing something else, like a building.
The bottom line is that Reality Creation used in moderation (setting 20 is a great place to start), you will see an image that visibly looks sharper than with it turned off. For less cinematic situations, I find 50 makes a dramatic difference, but I've only really used that for sports. I would find the 50 (out of 100) setting to be high enough that I'd find some objections if I used it on a movie such as The Hunger Games. But then, I'm supposed to be a bit hyper-critical, whereas the average LCD TV owner, I'm sure would be fine with it.
I consider Reality Creation a real strength of the VPL-HW65ES. This Sony's got panel alignment, but that's never a perfect solution for these 3 panel (chip) projectors. Still, the Reality Creation, set properly for the type of content you are watching, can easily make you think it sharper than a typical single chip DLP. Lastly, although they all work differently, I find Reality Creation to be more effective than JVC's E-shift, or Epson's Super-Resolution. Epson's Super-Res, will end up having you think it's a sharper image, but it picks up some hardness in doing so. The Sony is just more natural looking in that regard. (On some content I do favor the Epson, on other content, the Sony...)
Sony's panel alignment program works brilliantly. It's still, I think, the best I've seen so far. The Sony before adjustment had some red and blue fringing, but afterwords, that was mostly eliminated.
After using the panel alignment, as you can see in the image above, there's almost no trace of colors being unaligned! Really nicely done!
These images - pre and post alignment are from the review of the older HW55ES.
The difference between the HW65ES's alignment process and Sony's higher end projectors is that with the VW series (the more expensive ones), after a general alignment, as described, you can go in and further fine tune by aligning different "quadrants" of the screen.