It seems like a good idea, especially for businesses or if you visit a lot of...questionable..sites. Dell brought out Dell KACE a while back though... admittedly it only uses Firefox 3.6 but the concept is still the same AFAIK. Not sure how I'd like the shared folders thing, might make getting to your downloads a bit of a hassle, but I do like the thing that acts like a Snapshot each time you start it. However; How would this work with things like, say, desktop gadgets like RSS readers, weather widgets or things that need to update info from the internet? Maybe I misunderstood that. Seems like a good idea, but I think that in some situations it may be difficult to live with on a day to day basis..
If i undertsand this right its not really a security feature of FF but basically a virtual machine running firefox. Good way to keep the main system clean but far from revolutionary. I use an Ubuntu live cd everytime i use internet banking for added security.