This sounds interesting. What Xerox document are you referring to and what is the most relevant part?
One thing I found interesting in the blog article was the notion of "smart controls", but I can rationalize that away as another MVC module; after all, the Windows OS itself is handling all the interesting behavior, and the GUI app is borrowing the behavior. Depending on the toolkit that interfaces with the "smart controls", we get access to events (mousedown, keypress, etc) that can serve as input to one of our application's controllers.