Firstly well done to them for trying; we all need to make an effort to rub our brain cells together and re-think the way we live, so good on them for doing just that.
But in the interests of being really ecological, several questions have sprung to mind about this product:
(1) Is it 100% made from paper? If not, AFAIK any other non-glass based product will be difficult to recycle without producing nasty by-products, which sort of nullifies the '97% less packaging weight' trophy.
(2) You can send back the packaging and have it made into a bag or a book - great idea. But isn't that just encouraging production and consumption of more stuff that we just don't need?
(3) Why not just carry on doing glass bottles but change the lids to glass as well?
Maybe I'm the only one who's interested...