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I don't really understand what is it. Could this software finally allow me to play my Windows games on Linux host with near-perfect performance? Or is it something else?

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If you have two graphics cards and a modern processor you can pass one of them through to a VM that can directly use it with native drivers, so you get native GPU performance in that VM. However that means the picture only goes to the physical outputs of that second GPU.

What Looking Glass does is take the output picture of that GPU and copy it into a window on your host machine.

Is this much different than what a Thunderbolt-attached eGPU does when used to accelerate host graphics on a notebook? (I mean, besides the bandwidth available.)

Yeah, it's conceptually similar to Optimus or eGPUs but with two OSes instead of one.

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