It's not very clear from the article why this solution is superior to using a x-mixed-replace/multipart stream that contains image/jpeg bodies. If you don't have any audio just stream your jpegs using the x-mixed-replace HTTP response type. All browsers support it (even IE6).
Better quality and framerate with lower bandwidth usage. At peak, the example in the article served 250 clients with smooth 30fps video while using about 120mbit/s.
I agree that this is a huge hack and just serving JPGs would be much easier, but this hack turned out to work pretty well.
Unfortunately iOS broke the functionality somewhere around 5.1; it was still broken in 6 and I haven't checked iOS 7 yet. Animated gifs have the same issue: MobileSafari waits until the connection is closed before rendering anything.