Loved it, and enjoy the layout of that site.
I think Mr. Levine has some awesome story telling skills and I think his recognition of SoM's "dynamic narrative" gives merit to it as a whole.
However, I think he says it best when he says, "Yes, these are baby steps toward realizing the kinds of stories that games can uniquely provide," because the systems in play are obvious to me. I see that it's randomly generated and that almost makes it less impact-full when I have my encounter with (insert orc name here.)
That's not to say it's not an awesome feat, but more that I think when the systems are laid bare - it's not as effective as a tailored narrative to me.
I would also love to see what Ken is working on; even more so now that this could even be tangentially related to it.