Interesting video. I blogged about this, and where it might fit into the bigger picture of Microsoft's cloud BI strategy last week: http://cwebbbi.wordpress.com/2011/12/16/bringing-it-all-together-in-the-cloud-and-excel/
As I said in that post, I think Data Explorer could have an important role to play here; this even more recent post on the Data Explorer team blog shows how it can push operations down to the data source and it doesn't take much imagination to see how it could work in this way with Isotope too:
http://blogs.msdn.com/b/dataexplorer/archive/2011/12/19/where-oh-where-is-my-mashup-running.aspx
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