Thinking about it a bit more, I wonder how this compares to the AI used in hack n slash games where you get swarms of enemy's all over the place. I'm thinking of the Diablo I & II (and future III) series from Blizzard. I suspect these games use a similar idea in their monster AI.

These games use fairly simple monster AI that usually follows simple rules, so it may be much simpler than what this guy claims. However I think it must be applied per creature. Some types of monster will run and cower when you kill their nearby friends, others run off to heal but some of those Hell Bovines will chase certain targets in multiplayer games. I never got the feeling there was an overseeing god directing all the units with these games.

Summary reads like a marketing blurb but the actual article is slightly more interesting. The basic idea is that in an RTS game, the AI is at a unit level rather than an 'almighty all-seeing controller'. It is a fairly interesting idea and does sound sort of different way of thinking about computer RTS opponents. Weather or not this actually makes for a fun game or a good idea remains to be seen, but at least there is something (dare I say) slightly innovative about this.