I get it. This is very clever. Note well that the device makes hundreds of photos, at varying optical zoom focal lengths. THAT is the key.
If it were merely a panoramic device, it would be no different than the typical nice level tripod and manual stitching software. You take maybe 3 or 4 shots, each one covering 70-80% new areas and overlapping the rest with the previous photo. Then you use the editing software to stitch together the image and you have a nice wide panorama view, but I'd agree with those who have said it would have no more absolute detail than any single photo would have.
But this is different. The camera is taking up to 300 photos - why? Because it is covering every angle at maximum optical zoom. Each photo covers a small percentage of the overall panorama, but it gives maximum detail, zoomed way in as it is. Then the camera moves a careful and precise amount, a fraction of a minute of angle, and repeats the process.
When this result is stitched together, you get not 3 or 4 photos laid side-by-side to make a panorama, but hundreds. You actually would need software to 'zoom it out' a lot to where you could see the entire thing on screen at one time - but it would have the advantage of being able to 'dive in' as Google Earth does, and the level of detail would be revealed as you dove in.
The Gigapixel Project camera works in a similar way, but it uses film and covers more area, then scans the film at a much higher rate than digital is currently capable of producing.
http://www.gigapxl.org/
This could essentially make up for the differences in a scanned large piece of film, making such 'Gigapixel' photos much easier and cheaper to obtain.
The device would have interest, I would imagine, to the manufacturing, civil engineering, and other professions, and it would be quite interesting to museums and such as well - not to mention the fun factor for hobbyists.
I wonder how the inventors control for such things as light level changes during the exposures?
Well anyway, it's neat, thanks for sharing it.