I believe that "ephemeral" or "dynamic" credentials is a concept that is just starting to emerge.
This particular implementation, I don't see what threats it is really stopping.
One question we lead with at ScaleFT is, "How Old should an SSH Key be?". It leads many to admit they have had the same key, across multiple companies, across multiple devices. The threats against that kind of private key are massive, everything from an old corporate backup at a company you don't even work at anymore, to an APT capturing it 3 weeks ago.
Basically using an SSH key, doesn't prove much, except that at any point in time, you had the associated private key. This is a pretty broad attestation of identity -- so generating a key for every use -- and then building in additional attestations of identity (eg, two factor) for the use of that key, is something I think we will see more of in the future.