it's most likely for small camera systems to produce good low light results using cheap, simple, fast lenses. First use will probably be phone- cameras. Getting the required amount of curvature in larger sensor systems is likely to be much more challenging as slight (focus) errors of a few microns could occur with temperature shifts and if you're looking to make a compact, large sensor camera with this then you're really gonna have to decrease the radius of that sensor's curvature. So, more likely practical for 1/2.5 and smaller sensors.
Still, will be very interesting if they can effectively achieve this for larger sensor formats.
This is what I was thinking....
Also, a curved sensor would work better with wide angle lenses, sort of like why a flat sensor works best with long lenses.... and since phones and p/s cameras tend towards the wide end of the spectrum, this could make the lens designs simpler.
And yes, there will be distortion, but look at the distortion you already have in those lenses... take an ipad or iphone and move it around and see how the image redraws as you move it... my bet is that the curved sensor will result in less distortion than the current sensor/lens combinations have now.