How they described the process reminds me a lot of 3d Studio Max's Morpher Modifier, which can change one aboject into another, as long as the number of vertices are the same. A lot of simple animations (like a bounding ball or breathing character) can be accomplished with Morphing.
I wonder what the long term applications from the link will actually be? There is a lot of promising tech out there that never gets past this stage of development. It would be need to see it happen though. I still want Robotech/Battletech style Mecha.