1) All foods are broken down into their respective molecular constituents (free fatty acids, glucose, amino acids, etc) through a series of enzymatic reactions. These nutrients are ultimately absorbed through the wall of the bowel or what remains passes as feces. This is true whether you are eating lettuce, ribs, a slice of bread, or this soylent product.
2) Frankly, I see no difference in this product from any other meal replacement powder available in bulk at any nutrition store. If we ever see a nutrition label, I suspect it will look strikingly similar to Slim Fast.