You can actually try it on the site, by the way: <a href="http://laikafont.ch/applet/test.html" rel="nofollow">http://laikafont.ch/applet/test.html</a>
The idea of parameterized typefaces is an old one; I guess this example is interesting in that it attempts to parameterize between a serif and sanserif typeface.
I thought this was fantastic. In that vid it looked like it might have been some new way to create fonts. I think that would be an interesting thing to research or develop. Something where you can, through mechanical devices "feel out" a new font. Or maybe one where you can record a new font similar to how you record an audio track. Hook up a keyboard and the typeface creates itself based on the audio spectrum you create. You could have fonts that are almost alive.