In theory this is much better than what Postgres currently does. Performance depends on autovacuum cleaning up the mess you leave behind, with the amount of dead tuples increasing you also get index bloat which leads to reading much much more data than necessary. I see 3-5x read amplification before vacuum kicks in on update heavy tables (with vacuum tuned a lot).
This is basically what Oracle does with UNDO and it is obviously very scalable. Vacuum on the other hand has its limits, there is only so much you can squeeze out of a single threaded (at table level) process.
What I look most forward to is that it should enable FLASHBACK queries.