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besides, OpenGL has pretty small limits on some stack depths
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True, but not that small. My Geforce 4 has a modelview stack depth of 32. I doubt that there's a model that would need more than that.
The main advantage of this is, that you're doing all the transformations in hardware and hardware processing = goooooood. Of course, you could also write a vertex shader for this. Isn't very hard with GLslang and works with Geforce 3+.