In this video from the American Chemical Society the technology is explained, and they mention how they have tried this on Wheaties. One of the benefits they noted is that the milk protein coating actually keeps the cereal crunchier; but there are many yet answered questions: What is the nutritional value? How does it taste? And, probably most important, will consumers accept this as a new way to eat cereal?
Regardless whether this works or not, it is great to see innovations that could potentially revolutionize the way we eat, cereal included. The future could be less packaging waste, more convenience, and less soggy cereal!