Amazing technology, check out Sony Revolution
 

a.k.a....what to do with After Effects and a bunch of mini-disc cases.....

Still looks cool, though...

I noticed that after the "module" is placed on the "table", it always cuts a few frames before showing what the "pen" does... AE?

Well, what tipped it for me, aside from the obvious, is the video playing back on the "modules" didn't quite square up with how they were laid on the grid. Cute, but not very realistic.

What the heck would be the point of that anyway?

I don't think this is compositing. It would, first of all, take a lot of time to match the lighting and colours to the consumer camera. And then, it would also be quite hard to track the squares and apply the image on them. This is either real, or a product of a very good compositor who has had a Lot of time on his hands. I believe it's the former