Rich you are correct, that front hub-steer setup is based on a Defazio style hub....something on my list of things to do one of these days.
Looking at the chassis layout, the front end geometry looks pretty good, the swingarm is phased well so no predisposition to standing up or diving. If his spring and damping ratios are good and I don't see any glaring reason to say otherwise looking at the rest of the engineering, I think it's at least in the ball park. Ultimately the front swing arm would need to be stiffer but still, it looks pretty well thought out.
As noted, the obvious positives are that it can be tuned for no dive under braking. If you've ever ridden a bike hard that doesn't, then you know how cool it is. So very stable in the corners without sacrificing turn in with goofy rake or anything else.
The only real negative to this kind of front end is the defazio hub *can* limit lock to lock turning if you keep the diameter small, and of course there are folks that can't handle a bike without common forks. I spent an enjoyable month on a well sorted Yamaha GTS1000 and other than being able to drag the front swingarm if you got too far over in a corner it was wan of the best cornering bikes I've swing a leg over. I WILL build a swingarm front end one of these days!