The only way I could understand what this thing even did was to watch the "1st test" video when they're going slow. The other videos and pictures didn't really let me see the reverse rotation.
Having this new system won't magically snap it into alignment, but keeps that natural precession (as seen in the circle slowly traced out by the pole of a spinning gyroscope) out of the equation. With this powerful (because of the weight of the tire, rim, etc.) force nullified, the rider can easily correct the alignment when the front tire touches back down. Seems like a pretty sound application of physics to me.
By the way I'd seen that hideous last wreck into the parked car, and I'm pretty sure the guy survived. A little harder, and the car might have been flipped onto it's roof!