First impression:
Conceptually, I'm really liking the approach. I could see it being a viable refreshing of desktop paradigms. There is an interesting mix of OS X, Windows, Linux WMs, and some other goodies from other apps here.
Visually, the biggest drawback is I could not tell while watching the video which panel has focus. I am assuming the idea is this would be handled by tracking eye focus. Perhaps I could get used to that, but it'd have to be instantaneous switching. As I'm typing this in a half-width browser window that takes up all vertical space, I have the Desktop Neo site in another half-width browser window taking up full vertical space by its side. I'm bouncing my eyes back and forth between the site and this textbox I'm typing in. I'm currently staring at the Neo site while I'm typing, without any looking back. Such a desktop paradigm would have to remain very intelligent about recognizing that I'm currently typing in a panel while looking at, and perhaps scrolling through another panel, without wanting my current action to lose focus or be interrupted in any way. I work this way all the time.