Looks cool, but for those unfamiliar with Sage, it has a similar notebook feature built-in. Codenode looks promising, but Sage's notebook is currently more mature. You can try the Sage notebook out at http://sagenb.org (needs registration but it's a quick process). (use shift+enter to evaluate what's in the current box)
Nice. I think there's definitely room for a notebook like this outside of just Sage. The real time collaboration you mentioned sounds like a killer feature, too.
The benefits are more the ability to "code anywhere", to not have to install anything (think Windows here), to have the backend server contain lots of pre-installed packages, and to do real-time code writing collaboration with others.