Dave, you are correct. For an aircraft to have efficient, long endurance hover capabilities, it needs a much larger disk area. Tiltrotors and tiltwings sacrifice hover efficiency for higher cruise speeds. There have been a number of studies of variable diameter tiltrotors; however the additional complexity and cost (on top of the already significant increases from a conventional helicopter) are showstoppers ... at least with today's technology.
Again, Project Zero is a "Technology Incubator" (tesbed), not a product. Although they have an artistic rendering of what an operational manned version might look like, it is currently not intended to ever be developed into a "real" program.