On the iPod you could scroll incredibly fast but with incredible control, stopping at just the right place. The UI would give you a little scroll bar indicating your position and I think some versions gave you an alphabet to see where you were in the very long list.
So, I like the idea and the homage to a beautiful and iconic piece of UX design (possibly the best bit of UX design ever), but the implementation is lacking the finesse of the real thing.
Oh and that beautiful little "click" sound you would get through your earbuds, speeding up as you scrolled faster, really needs to be represented. I can hear it now, it's the sound of a iPod click wheel.
(Also the demo really should show how you can use the buttons, there seems be be support in the library, they seem to do nothing)