Very interesting. I hadn't seen the seamless iframes before, but the idea of css cascading through could save some load time and make them a bit more responsive and useful.
A massive issue with iframes is the browser back button, if you click 10 things inside the iframe and hit back in the browser it will start to navigate the iframe history, not the parent and I do not know any way possible to have a normal navigation inside the iframe without filling the browser history with its pages.
What i don't get is why they made this one feature bundling all the new behavior, as opposed to letting you decide for yourself if you want css inheritance, auto sizing, auto targets, etc
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Good info, just hard to get at.
Kinda curious to see the 'hastily written demo' (slide 38)...