thought id let you guys know that it does not exist... I was to a lecture with the guy who "made" it, David OReilly. Who is an animator living in London right now.
hes website is here:
http://www.davidoreilly.com/But he showed this and that it was fun it has gotten so much attention since it was only a concept ! What the video shows is all made in the 3d program Maya, with video-tracking. And the device is actually an Ipod touch, not an iphone.
It's all fake, and just a fun idea... so far! He did say however that some had contacted him to actually try and make this for real.
*edit* im sorry i cant give you any visual proof on this, since he doesnt have it on his website but he did show the original video footage of the ipod touch and how the camera-tracking had been done through maya, and the little guy is through MEL scripting turning due to the maya camera matching the reallife camera in the video.
Awesome idea though! hope it will, somehow, be made for the iphone.