Which sense of 'manifold' is used here? I vaguely know the locally flat object with an atlas of maps, but I'm not sure that's what they mean.
This is, I think, simply a restatement of the fact that neurons exhibit correlations in their activity patterns. That is, not all vectors of activity are "allowed". Still, it has implications for everything from learning to brain-machine interfaces.
Hardly any work is ground breaking in science nowadays. There are incremental advances most of the time.