So if you think of your dynamic range as being limited by the noise floor and the overexposure ceiling, this technique lowers the noise floor while keeping the ceiling right where it is, giving you a better effective dynamic range. ISO bracketing extends both the floor and ceiling by a much larger margin, of course, but its has issues that complicate its use in automated HDR shots, as described in the article.
A similar problem might be to try and improve the resolution of a single hand-held photo, shot in normal lighting conditions, by taking many pictures in rapid succession and then processing them. Each picture would be in a very slightly different position and so (again, in theory) might provide more data?
Thats what they do when you see those 3GP+ shots you can zoom in on.