Earlier quoted context omitted.
this is magic? isn't this precisely what the hardware was designed for? i wouldn't call this GPGPU personally - this is very much graphics. GPGPU is more about e.g. doing multi-precision integer arithmetic on the GPU - where the processors are used for something which doesn't fit the 'streaming processor being fed vectors' pattern which the architecture was made for (of which this demo is a very good example) - quite…
Most people wouldn't have thought of using graphics hardware to do physical simulation, especially of fluids.
I was at one point perusing a PhD in Computer Graphics and I studied many papers ranging from haptic devices w/ liquid simulations (great paper on making pancakes which change properties as they cook [1]) to research from our lab on volume rendered simulations to prevent temperature shock in introducing cool water (relatively) to prevent a meltdown of a nuclear power plant.
[1]http://www.gmrv.es/Publications/2013/CMOL13/haptic_multistat...)