There's a few things wrong with this prototype.
1. No touch screen. Sure, "bend gestures" are an interesting idea, but that doesn't make up for the lack of touch screen. Touch screens are standard equipment on all of today's smartphones for a reason -- it's super easy to use. I'm not sure what would be involved in creating a flexible touch screen, but it could be a useful invention.
2. No color. Sounds dumb, but a black and white web browser is not going to fly. I imagine this is going to be in the 2nd gen "e-ink" but that may be a while.
3. The battery pack/logic part. The screen itself is great, but if there's a big "handle" attached to it that contains the battery, CPU, memory, etc. that's actually more cumbersome than just having a thick phone. My iPhone fits in my pocket, but this device would be tricky to squeeze in there. The size problem seems insurmountable due to the battery. Perhaps in a few decades we'll have incredibly small, flexible batteries, but that's a much, MUCH harder problem to solve.