Yeah, I don't see it as being an end to the keyboard and mouse. I for one most likely could not type accurately without any sort of tactile feedback. It also hurts to smack a hard surface with your fingertips after awhile.
Doing these motions is actually quite tiring. I wouldn't be able to sit in front of a pc for extended amounts of time with my hands out in front of me like that.
Now, I DO want to see this thing come about. I'd love to be able to have the option to use a multitouch screen. There are benefits, but I don't see it being a good enough replacement for the mouse and keyboard in all situations.
It would be sweet for art work though. It'd be neat if it could be set to a stylus mode as well so it could be a giant art canvas that works like a wacom tablet with pressure sensitivity and all that good stuff. I know it already does that with your fingers and stuff, but if you are using it as a drawing pad, you'll most likely make contact with the screen with your hand or wrist or arm or something, thus possibly confusing the stylus. Dunno. Artwise, it has really cool possibilities. I'd love to get one of these things with Photoshop or a 3d art package.