I saw the presentation, it was better than I expected, and recommend watching it once videos are posted. It's not an ivory tower project at all, they have a working implementation internally based on the reference Bitcoin client, and they are going to be making that prototype available this summer. Assuming the scalability and other issues can eventually be resolved, they want feedback from the community as to whether to try to eventually make the technology be tightly integrated with Bitcoin, or deployed as an altchain, or something else.
I suggest they should live test it on the namecoin blockchain, which is the closest to bitcoin (besides the testnet) and might provide some spin-off development benefits for that project also.