As explained in the article, this is different to combining exposures, which is what conventional HDR does too. The important thing to consider here is how does this scheme affect the SNR of the sensor. This scheme encourages keeping essentially maximum possible sensitivity (ISO), but this "modulo sensor" circuit may introduce some additional noise.
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You can actually already do this with current cameras, using 2 exposures per frame, works for most types of action.
Red Epic does this with HDR-X and hacked Canon cameras with Magic Lantern with Dual ISO
As explained in the article, this is different to combining exposures, which is what conventional HDR does too. The important thing to consider here is how does this scheme affect the SNR of the sensor. This scheme encourages keeping essentially maximum possible sensitivity (ISO), but this "modulo sensor" circuit may introduce some additional noise.