It's pretty much over my head technically, but it doesn't look like a hoax.
I've seen similar criticisms of Linux before, most notably by Jaron Lanier.
Really can't complain about people trying out new ideas. If they can make this thing work more power to them.
New ideas are great and all, but sometimes you've gotta wonder...
This OS will probably have a hard time finding a user base.
With no concept of files, it will have even LESS compatibility with other OS's than what currently exists between windows and linux (How do you share office documents when one OS has no concept of a file and the other OS has no concept of an object? Someone will have to compromise with an ugly hack...)
What about drivers? It takes hundreds of thousands of programmers world wide to keep drivers for windows and linux up to scratch, and even then... And these guys are a start-up OS that no one has heard of. I don't see hardware being very accessible for it's users, at least, not in the next 10 years.
But when all is said and done, I am being rather cynical, and it doesn't hurt to be proven wrong every now and then.