Although it is cool to see some fresh thinking in control design, the Fisheye Menu proposed here is really only useful when the number of items in the list is only slightly above the number that fit into the list. In that case, I think the confusion of having the control sometimes work differently than other times (based on the number of items in the list) outweighs any potential usefulness. In the case where you have thousands of items, a single pixel’s worth of mouse movement would move more than one item, making the control useless.
Most apps today are built out of controls that we’ve had for at least 10 years. Then again, the keyboard and mouse haven’t changed much in a very long time either.