Update: I've heard back from E-ink and that is the same Triton E-ink screen as seen elsewhere. The resolution is 300x400.
Color me unimpressed. I've been seeing decent quality video on consumer model ereaders for nearly a year now. The Nook Touch in particular has been a favorite of hackers due to the fact it runs Android underneath.
Okay, seeing the video in color is kinda interesting, but in the long term it doesn't have much use. The low-power benefit of E-ink screens is lost when you have to refresh the screen 30 times a second. And the quality and resolution of the video is much lower than you would find on most any LCD screen.
In any case, this demo is likely not intended for the consumer market.Project Vivit's main business is reportedly commercial signage. They plan to use the video-capable color epaper display to sell to businesses for use in commercial facilities and medical practices - not for ereaders.