What this is and what's exciting about it is that it's a new human-computer-inteface designed solely for producing synthesized music.
Think about what we had before: Midi keyboards, Midi guitars, keyboards and mice, a few more interesting control surfaces and not much else.
Sure the keyboards and guitars would be good for producing keyboard and guitar sounds, but what we needed was a way to control the gamut of sounds that can be produced by a computer in a unified way. This could well be it...
Agreed, their demo was poor, but Les Paul was no Jimi Hendrix either.
I would be interested to see what sort of software comes with it and how reprogrammable it is.