Looks interesting, and my intuition is that code is a good application of diffusion LLMs, especially if they get support for "constrained generation", as there's already plenty of tooling around code (linters and so on).

Something I don't see explored in their presentation is the ability of the model to restore from errors / correct itself. SotA LLMs shine at this, a few back and forth w/ sonnet / gemini pro / etc really solves most problems nowadays.