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Basically it it's a live wallpaper that is “based ... Depending on the wallpaper it can get quite psychedelic. It was quite interesting watching the wallpaper move as I was trying it out.
The icing on the cake, though, is a new live wallpaper for Android 2.1 phones that's a live map of your location, which sounds absurdly awesome -- assuming it doesn't beat your battery to a bloody ...
Many Android owners seem to have a love/hate relationship with live wallpapers - no matter how stunning they are, they generally zap performance and battery life too much to be used for long.