First of all, I definitely agree that resumes are woefully overused and overrated. They have structural problems and incentivize people to use "negative selection" criteria where people are eliminated based on
not having a specific feature rather than selected
for excelling on something¹.
This article neatly demonstrates that resumes are not necessary and that not using them can unlock new sorts of candidates.
However, I don't think there's a conclusion to be made about the actual method used here. I suspect that it worked because it was different, not because it carried a fundamentally strong signal. If everyone did this, project descriptions would be gamed even more than resumes—it would select for people who prepared for the selection process² more than anything else.
This reminds me of various captcha strategies I've seen used by small forums to great effect—solving some math, typing a word into a text box, choosing a popular character's picture… etc. They all work, perfectly. But only because spammers don't care about the small fry: it's not worth their time to modify their bots for your little site. If any given captcha becomes used widely—or your forum grows big enough—they will bypass it trivially.
Now, an essay like this isn't quite as bad as a captcha, but the idea is the same: it works because it's new and different. If everybody used it, it would probably be a step back.
Ultimately, I think the real moral is that more companies should do their own thing, even if that thing is not great in the abstract. Being different carries a value of its own, and it breeds biodiversity that's healthy for the system as a whole. (Of course, many of the things companies try are really bad for various reasons, but that's a different story…)
¹ In particular, most people have a bunch of "red flags" they look for with, at best, cursory rationale—everything from passing on people who didn't go to the right school to those who have breaks in their work history, based on "common sense" or "experience" rather than anything meaningful. Most of these criteria seem counter-productive.
² I also think this is really true for college admissions and especially the admissions essay. A project blurb for hiring is more or less the same idea in a new context.