Yeah saw this yesterday. I'm not sold on this yet. It's cool, but I don't see this as being a viable option for AAA game engines. They make no mention about animation.. and I can tell you, NO ONE would want to weight paint a character rig of 500,000 polys or more. Hell, a 12k character is frustrating as Crap. Yeah, cg movie characters do have poly counts upwards of 500k-1m, but you only have to rig a couple of those. Games are a different matter.
And then there is the point that this particular tech (this exact project) has been in development since 2003, and it really hasn't changed that much since then. All this current buzz around it is just a resurgence; most likely pushed so it could be seen by investors.
But we'll see. I'm not holding my breath.