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Look at the video at the bottom of the page (say, at 27 seconds in) -- it is very clear that it has higher resolution than just which key you are touching.

It says there are 80 touch sensors, but presumably each sensor is like a mini track pad, not just an "on or off".

The pinch-to-zoom demo looks that way due to them using it in chrome, which is janky by design as it zooms in discrete steps. Later in the video they show some more granular controls such as rotation of objects and it looks quite responsive to me.

We probably have to wait for some more hands-on videos, but the product itself looks promising.

Agreed. Seems like it would either be awfully complex (and expensive), or a jarring experience compared to most trackpads.

If you're a trackpoint user, Lenovo's usb/bluetooth thinkpad keyboard offers the same kb+mouse combo in a similar form factor.