I might've misunderstood your post, or what they had originaly said. But nontheless, I agree. Looks promising, to me at least.
The OP was asking about the Planes of Oblivion (Coldharbour, The Deadlands, Shivering Isles, etc), while that video was talking about the heightmaps- that is, what determines what the land looks like- from the game "Oblivion".