This article really isn't about the OS, or lack thereof. It is about a much more seamless cloud computing experience. While the demonstration does not make much sense in real world applications, it does prove that the launch time of a new cloud computing resource can be much closer to the developer's ideal: instantaneous. In practice, a single resource could be paired with a single consumer's session, and remain allocated until their session concludes.
From a management perspective within the datacenter there will be OSes involved. But developers will no longer need to concern themselves with OS images or initialization scripts, as is the case with current cloud infrastructure. I, for one, look forward to the introduction of this type of service. It will be a vast improvement over my company's current (necessary) approach, which involves booting new EC2 instances, running install and configuration scripts, fetching and launching our software, detecting that the new resource(s) is/are online, and finally, distributing tasks to the new servers. This process can take upward of 5 minutes. Not an issue given the service we provide, but less responsive than we would like, especially since we pay for the spin-up time add part of the instance hour.