We've been speaking about this over at the IEM thread. It's not a new thing - it's just another take on the Subpac and Woojer tech... and arguably less well executed! Having tested the Subpac and owning the Woojer, I can tell you that haptic feedback is a very powerful medium in terms of getting the sensation of loud bass!
@ped - they are generally powered by high power batteries as found in phones and bluetooth - which is good enough for listening to music, not so good for IEM use. However, if you are using a wireless pack, you plug the wireless pack into the woojer and then your headphones into the woojer. The woojer has it's own built in amp... so as long as you are wireless in terms of IEM, and wireless from your bass, there is nothing tethering you to the spot.
Oh - and in response to the thread title. Genius.. but maybe poorly executed. We shall have to see post the kickstarter campaign. It took Woojer the second release to get to where it is now... the first release was very primitive in comparison!