IF something as ridiculous as that became popular, I'd only see it as a live tool for electronica music.
dude the same things they're doing in that video- manipulating sine wave operators with modulators, lfos, filters...thats what every synth, analog or Fm (i'm talking everything frm the andromeda to the DX7) does. now, that tech is protoypeish i guess right now so it doesnt sound as good as an andromeda, but it easily could in a few years.
roger lynn and yamaha, i think, maybe roland, are working on a prototype light based circular programming pad. i gotta track the link down again but basically its about 250 white fiber optic tubes on a pad, and each can be a synth, modulator, filter, whatever, and they can be played by tapping this thing, and the rhythm is all related to the user in real time using light patterns on the pads, shi* is CRAZY. i'll try to find that link and post it up soon.