They're using a deuterium reaction? That's not bad (per se), but the neutron production can create difficulties: major regulatory hurdles (can be used for nuclear material refinement?), difficult to extract energy, and causes a lot of nearby material fatigue. Another big contender (IMHO) is Tri Alpha's aneutronic approach: http://en.wikipedia.org/wiki/Tri_Alpha_Energy,_Inc . Either way, cool stuff!
Boron fusion is pretty much the ultimate of course.