My understanding of the technology is that the PS3 will broadcast both images to the screen, just like they do for 3D.  The images quickly go back and forth between the two.  In 3D, these correspond with each eye, and the glasses synch up so you get a 3D effect with each eye.  Used with 2 player coop like split screen, without it, the glasses are synched so that each player only sees their own image.  End result is two players able to play looking at the same split screen, without there being split screen.

My buddy just bought a 42" LCD for $490. It cant do 3D but 99% of the population would rather have a larger screen than 3D. While I think 3D glasses are lame I really dig the concept of two player fullscreen. Sadly it is only useful for gamers and I do not think 3D will have the market penetration to ever make this something that will happen to all coop games.

I've had time to think about it. Why would I want that tiny 3D TV?

-My current TV (and every other TV in my house) is bigger so size isn't an option.
-My PS3 is hooked up to a TV, already. Would I want a smaller TV to play multiplayer? No.
-If I got a second PS3 and I wanted to play two player, I wouldn't use the two player option they provide. I'd just use thhe free online instead.
-For the 3D, then? No. At that size, what good would the 3D be?

So I personally can't think of a reason why anybody would buy a tiny 3D TV. I'll just take that TV money and buy a 3DS and a PSV (when the time is right).

i'll have to see this 3D monitor (its not a tv) before i buy it. who knows maybe the 3D might be good.