while this is awesome, I can't imagine anyone in my research group trusting a not submitted paper to a site like this. For on-site usage I hacked together a similar site in minutes when etherpad-lite came out ( you can try it out at http://brutus.lostpackets.de/ethertex/ethertex.py ) , but sadly I lack the time to make it really usable.
Thanks for the feedback and the cool demo. writeLaTeX is also something I hacked together for my own use, but I have been adding to it gradually over the last year.
That's a fair point about trust. I guess I could package it up as a VM for people to run on their own servers, if there was enough demand, but I think centralised hosting has many benefits, especially for collaborative work.