10mm is not far enough that you have to hold your entire arm off the desk. Lift your mouse off your desk by the thickness of your pinky, that's how high it would be suspended (assuming you don't have more or less weight in your hand/forearm than 1000g)
Now, that's low enough to the pad that you wouldn't be able to use tilt sensing technologies, just not enough room, so it probably tracks like more standard mouse, in lateral movement.
I think it's neat. Maybe not groundbreaking, but I think if nothing else it will help get mouse designers thinking outside of "roundish thing with a couple buttons and a laser that you push around a flat surface" It's inventions like this that -lead- to innovation from others.
I'd love to try it, play around with it. There isn't much room to actually move, so maybe it's closer to the little nub pointer in the middle of laptop keyboards? Similar to the tilt idea, but you just move the whole mouse to the right, and hold it right as the pointer moves.
I find that system to be exceptionally clumsy, but as I said, I can appreciate the attempt at moving into new areas.