Really, it was enormously impressive. That it worked, that is: turns out the magic of the system was the controls engineering. Placing manipulators on manipulators makes for a heckuva unstable system (every minor error upstream compounds, and timing starts to be everything). And if you go for stability, it becomes too slow to be useful.
But it could stack blocks in a clever way, and any microrobots that do anything at all is pretty dang impressive.
I don't know if Drexler ever mentioned Feynman's work. But nanotechnology was basically born at that talk.
For other areas that Feynman created out of having nothing better to say in a talk, look at quantum and reversible computing.
Ralph Merkle (of public key cryptograpy fame) has done some recent theoretical work, eg. his on "nanofactory", which consists of exponentially-smaller gantry-like systems (a bit like the print head on a cartesian 3D printer). He's also looked at "mechanochemistry" (forming molecules by moving specific atoms together in the right ways) and concrete studies of particular molecules, the energy levels and forces required, etc.
His most recent work I can find on Google Scholar are patents from a few years ago.
Some links:
http://www.molecularassembler.com/
http://www.molecularassembler.com/Nanofactory/
https://www.youtube.com/watch?v=zqyZ9bFl_qg
http://en.wikipedia.org/wiki/Molecular_nanotechnology
http://nextbigfuture.com/2010/04/six-degree-of-freedom-atomi...
Those are all "grey goo" ideas, ie. 'real' machines. There's also the "green goo" approach, repurposing biological systems like DNA, proteins and ribosomes, eg. http://en.wikipedia.org/wiki/DNA_origami