That looks quite cool. It looks like a formalization of WSGI application techniques, rather than anything entirely novel, but it's simplicity is very appealing. The examples are impressively tight...not a lot of extraneous crap required to fire up an application.
Paste is a toolkit for building WSGI apps. There's nothing else quite like it. I use it a lot, both by itself and as a part of Pylons.
what's WSGI?
Web Server Gateway Interface; a standard for python webapps. check out http://wsgi.org/ for more info.