My reading of this is that it effectively turns any cell into a stem cell - and then tells it what it should be. Rather than slap stem cells on the affected area and hope they differentiate correctly, they figure out what cells are needed, convert skin (because it's easy to get to, and is plentiful, and re-grows quickly) cells into the target and apply where they are needed.
What they did with the vascular tissue with the mouse was just convert the skin to vascular cells and let it migrate. With more in-depth (EG. nerve cells in the spine) injuries, they would convert skin cells to nerve cells, harvest the nerve cells, and then inject 'em into the problem site.
All the benefit of harvesting cord-blood, without the requirements of planning and storage.