This video is a high quality training video from The Guerrilla CG Project ( guerrillacg.org ) a non for profit organisation dedicated to teaching the fundamentals of computer graphics.
Here are a couple of examples of how smooth shading can affect real objects. Although this demo is in Maya, the concept applies for other packages too.
Author: Andrew Silke
For more information about Computer Graphics and higher quality videos visit The Guerrilla CG Project guerrillacg.org.