From the videos, they do have pretty killer technology, although they haven't even released it yet, and there are competitors aplenty. I'm curious, does anyone know what an "acquisition" like this usually amounts to in terms of money? At this scale, it's almost never talked about (ex. reMail's acquisition).
From my naive POV, it just does a couple of mappings in 2d space fitting a keyboard over the points you press, until some real words drop out. If that's all they have, it sure doesn't sound like much. Sounds more like a rainy weekends work.
Since when was life fair or work rewarded based on merit. These things are more about who you know than what you create.
I suspect the latter, but it's purely a guess. This is one area of Startup Land about which very little has been written.