I found this to be quite interesting. http://www.gizmag.com/steve-durnin-ddrive-d-drive-infinitely-variable-transmission-geared/15088/
huh....interesting indeed. I wonder how much load is put on that secondary motor. I think that would be the biggest limiting factor (and failure point).
The update on it is interesting too: http://www.gizmag.com/d-drive-redux/15120/ This points out that there really isn't a secondary motor, but rather two motors that need to provide torque on the same order of magnitude. It sounds like it wouldn't work with a big gas engine on the input side and a smaller electric motor on the control side. It would be really interesting for an all-electric drive system though, with two similar electric motors on input and control sides.
Yea...I wondered about that. Thing is, Electric motors don't need gearboxes, as they have an enormous power curve. the addition of this gearbox and a second motor is just a ton of extra complexity for no gains. Really cool concept, but I don't see it having an application in the automotive world like they keep hinting.