said "you can see that the water is clearly conductive (not distilled) as the flow is causing the screen to slide".
Actually, if you look at about 0:50 into the video, you can see that the screen is still sliding to the left even after he takes it out of the liquid when there is no flow or finger that could be causing it, which suggests the sliding is the result of a fault induced by the liquid. In the video of the demonstration at CES, the rep tells us that the touch screen won't work under water, but is unfortunately cut off by the interviewer before he can elaborate.
Edit: Note also that in other videos on their channel, pouring their liquid directly on the screen doesn't activate any touch screen functionality at all. e.g., http://youtu.be/Ln0daAowdJI