Yes, I really liked that project and I think the design is fantastic (it leverages WebKit for rendering).

Both TermKit and this project will have an interesting dilemma with editing remote files though. The advantage of SSH is that you really aren't storing any remote files locally (only the currently visible characters are stored in memory). An editor that uses this new model and eliminates lag requires transfer of remote files to the local computer. There are a lot of situations where this is not a viable option.