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This is pretty cool. I'm most impressed that the iPad 2 has the horsepower to do all of the face-tracking and geometry rendering.

As others have mentioned here, Johnny Lee had something similar running with the Wii hardware but as far as I remember the display was all driven by a PC which was (presumably) much more powerful than the iPad.

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Johnny Lee's version was definitely cool, but it was more of a clever hack. It took advantage of the fact that the Wiimote is basically a very cheap IR camera, which normally tracks the IR light coming from the sensor bar. By using the Wiimote as a stationary camera, and wearing infrared LEDs on his face (attached to safety goggles, iirc) he could track the position of user's head. I'd imagine the Wii hardware would definitely be up to that task, as it is basically just the inverse of what it does already.

Also, if you really want to be impressed with the iPad's rendering capabilities, check out Infinity Blade. That will blow your mind.

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