Actually I think it's pretty cool. It's a tech demo in that page, so don't expect anything revolutionary.
The notes thing is pretty stupid but it's just there to show you what is possible.
Remember midnight commander much?
How about increasing the usefullness of current tools by adding another demension to them.
How about instead of pasty notes you have each app have something different, something usefull for that application. What if it's selectable.
For instance you have a media player, plays music, plays videos whatever.
Well on the front you have the full size version. You flip it around backside and you have the playlist/playlist maker. You flip it so it rotates on the bottom and it minimizes to a line. You flip it so it rotates towards the top then you have a mini version off the player UI.
You can explode it so the thing unwraps and fills up the entire screen so that you can get all sides at one.
So it's 3-d world. Apps can have many faces without having to open up 3-4 windows for something complicated you just have one interface.
How about a file manager like nautilaus. On the front you have the clean spacial interface. On the top you have the path you can type in, on the bottom you have the options for that window (color, stuff like that), and on the back you have a command line that has that particular window'd directory as the current directory. So that way you can interact with files on the command line as you see it in the directory without having to open up a bunch of new windows.
And as far as the Sun EULA?
STUFF the EULA.
Sun is going to GPL it.
Hopefully..... (time will tell)