Now create something like a Morph suit with those sensors, give it to a Gymnast, and teach them music...that should be interesting.

This has much chance of changing music as the mini has of becoming America's favorite mode of transportation.

This isn't really for making music, more like for generating random sound effects. There's no way you can create a proper tune or harmony with this, as a controller it cannot possibly be practical. At best, it's sort of like the theremine. There's a reason keyboard instruments were invented: they really are the best input controller for music. This one is like a touchscreen keyboard: a novelty item that's clumsy and error prone really doesn't compare to the real thing. It surely falls under the "gorilla arm" effect. If this worked, we'd all have the "minority report" interfaces to computers by now.

I bet that Ludwig van Beethoven is turning in his grave right now.

#3 Exactly, it's just remapping of few controllers from the keyboard wheels/sliders to these gloves. You could "make the music" equally well with your car gas pedal, joystick a thermostat set temperature if connected properly .
And really, the music (notes, instruments, effects, connections) must be in place already. The lady is just tweaking one or two of the knobs/sliders, modifying one or more sounds in some way... May be funny but Beethoven can sleep well for some more time....
http://www.sequencer.de/pix/software/REASONrackausschnitt.jpg

This is surly about freedom of performance while producing sound. There wasn't a piano or guitar sound demonstrated more a moog sync sound which is what I think this is ideal for. You are not going to be able to play Beethoven's 5th or rhapsody on a theme of Paganini opus 42 on this but that's not what it's about. Freedom of performance