Some might say, it's just another way to look at pretty rendered women. The developer says this software will be a social network kind of game (like Second life) where you can dress yourself up, and you can actually check your clothing while moving around (PhysX accelerated). This demo is impressive for sure as you can design your own avatar. The engine is actually UT3 based, which explains the easy adoption of PhysX, and the developer immediately took advantage of it. At a recent editors day at NVIDIA the crowd went wild when they saw this demo. Whether that has to do with the impressive graphics or the fact that I think the girls boobs are actually PhysX enhanced (they bounce according to Einstein's law of gravity) doesn't matter. It's just impressive to see. When you try out this demo, observe the clothing simulation, curtains, hair and in the background the smoke particles.
For more information on NVIDIA PhysX and the PhysX pack please read this article.