Yes, Two stroke engines have been around for a long time. However, this engine purports to be a clean two stroke - something that has not been around a long time. Anyone with an mid-70's two stroke motorcycle could probably go around the block before biking in their own smoke - so yes, this is new.
The advantage of this "system" is obviously 1) it's light, 2) it's clean; 3) it can use multiple fuel types.
1) A light engine can be combined with a generator; a battery. Think Electric-Car.
If the battery in an electric car is large enough to run ~30 miles; the car has a sufficiently strong auxillary motor (not enough to drive the car fast uphill, but enough to repower the battery between the downhill & uphill) - this makes an electric type car better. A "more complex" two stroke should be lighter than a four stroke; make the Electric car significantly better. (Personally, I drive under six miles most days. Occasionally I want to visit friends who live outside the range for a purely electric vehicle - requiring me to have a conventional vehicle, or an expensive one with multiple power systems.)
2) If the engine is as clean as a four stroke, then the engine is as clean as a four stroke. EG: you will be able to use it in a production vehicle without as much pollution as a conventional two stroke.
3) It can use multiple fuel types: EG: You can fill it with Gas, Diesel, Algie-Diesel - or if you're in a 3rd world country: you can use Strained Fryer Grease (Diesel Fuel) from Bob's Yak stand. (May only work in warm climates, not recommended for stoned hippies, etc...)
So yes, if this works as implied this is a good solution that represents a significant improvement over a four stroke engine. (Not to say that the moving-puch cylinder head would not work in a four-banger.) For a company that makes very light vehicles, and is working on an "electric-type" vehicle - this solution makes emminent sense. Please insert this in your tin-foil hat so the Govenment does not leak it to the Big Oil companies.