At first I looked at the demos and thought, "yeah yeah yeah, SCALING, ok..."  "yeah yeah yeah JPEG2000, ok..."

...and then the guy says they scale using POWER LAWS to scale at different rates, and the light bulb went on over my head.  F--king brilliant idea.  That's the patent Microsoft wanted.

For those interested in how power laws will change the way we look at things, I recommend the book Linked: How Everything Is Connected to Everything Else and What It Means for Business, Science and Everyday Life

This could end the distinction between an icon, a thumbnail, and a document.  Everything could be a document -- sometimes it would just be icon-sized, sometimes thumbnail-sized, and sometimes document-sized, and you could smoothly scale between those views. 

In this case power laws may literally change the way we look at things....

Now if you'll excuse me I need to go patent some stuff.  LOL