Wow, this is awesome. While the use case outlined here is great I could probably use this as a remote editor. That is, I can have my dev environment running in the 'cloud' and still expect responsiveness from my editor!
edit: grammar
All the existing ways I know to do this (shared filesystem NFS/smb/sshfuse, or shared screen PCoIP/VNC/RDP, or remote file editors like BBEdit, TextMate+rmate, etc) are all terrible to use in practice.