Ian,
The philosophy behind this is that if you make an aircraft complicated enough it will fly. I wouldn't want to be the guy that had to package the swash plates, or figure how it altered pitch without the flex in the blade tips overcoming the "improved stiffness". It looks more like UAV fairyland to me.
What they want is a nice simple gearbox with a coaxial pair of deep section rotor blades. Trouble is that won't patent.
Anyhow, i thought Lockheed were already involved in EH101 --> US101 ...