cool. Kawaguchi always does neat stuff, but I didn't know about this project. Aside from being big into garish colors, I always like his organic-art-technology stuff, and he often has a marine invertebrate theme.
It sounds like he's hoping to learn about early animals from this, too, which would be pretty cool... I know one of his students had a poster at SIGGRAPH a few years ago about simulating and animating jellyfish...