This Papercut demo is interesting but I feel like having two things happening at once must be braking some sort of user interaction rules.
It also makes me wonder if the single running application benefit of the iPad, where users only have one open application to focus on is being broken also by this mechanism.
The only places I’ve seen animation and text work together in a really interactive way is in video games like Braid where narration happens between levels while you’re still in control of the character.
To see Papercut replace pages with continuous text and to integrate it with visual and audible media could have big repercussions when it comes to the shape of poetry, short stories, and comics in the future.
So while this may not be the best way to read on the iPad, the combination of different mechanisms and the creation of a new experience is certainly exciting to watch.