I don't know exactly what practical application this contraption might be used for but it sure looks cool. Its like you are riding on several tiny metal horses. It is almost a little too creepy. I wouldn't really want hop into a car that moves on hundred of tiny legs.
I highly doubt that this could ever compete with Segway or Goodyear for any kind of mode of transportation. Yet I like the idea of not "reinventing the wheel" but completely changing to a different solution:no wheels just articulating legs. It might be that a drastically different solution is need for some problems.
When considering engineering problems and problems in general it seems that you must always give up something for another. Everything requires give and take. A phrase that I have heard my dad say over and over again is "You can't have your cake and eat it too." So when do you eat your cake and when do you leave it alone? Maybe you just eat half. Do you reinvent the wheel or do find another way or a hybrid type solution? Could it be that in some cases this is the best decision to completely change designs. Or is a different approach just filled with a new and larger set of problems.
I guess when it comes down to it, you have to compile a design matrix (problem solving chart) that incorporates all factors and variables pertaining to the problem(i.e. design requirements, resources, abilities, and time allotted). Then you would have to rank each according to importance and decide on the best solution. Once you have chosen the approach focus all you efforts and resource to improving and refining the details of that method. If you hit a wall, re-evaluate and move forward from there.