Welcome to the future. This is a concept I have been playing around with in my head and on paper for some time and now Pablo Martin has brought this vision to fruition. Basically, Pablo has created a software interface called Emulator that allows Traktor to receive multi touch data, freeing it up from the confines of just the mouse and allowing it to be used on a multi touch surface. That right there is cool enough.
Rodrigo from Chile is developing the multi touch surface you see in the video, which is called Töken. Between the two of them they have put together one hell of an incredible DJ rig.
Shout out to simfonik for turning me on to this.