First of all, yes, I did read the whole article.
I could be totally wrong on this (but I don't think so...), but there doesn't seem to be anything new here. This is just a differential (like those between the right and left wheels of a car) where the input drive is the same as the input drive on a differential, the output drive is one of the wheels, and the electric motor that determines the gear ratio is in place of the other wheel.
They will find that the electric motor is really being run as a generator in lower gears, and so is actually just taking away energy, not increasing the torque.
I invented something like this when I was just a kid playing with Lego blocks. One of the pieces was a differential and I tried to create something like this, but then determined that it would only lose energy, not actually create a different gear ratio.
The vital thing that they are missing is that the way it is built, it is always trying to go into a lower gear. So even if you put a fly wheel in place of the electric motor, it would just spin faster and faster until the transmission was in neutral (as soon as you put any load on the output drive).
No holy grail here (unfortunately).