It's not unsprung. The wheel and gear bit are the only unsprung parts; think of it like the motor attaching directly to the wheel bearing, and the wheel is able to move vertically on the bearing.

I think this only works with RWD, because the turning wheels can't be sprung without also having to rotate the springs.

It would be a better suspension (closer to racing suspensions) than standard, because wheels wouldnt toe in/out when they moved down/up. Looks expensive as hell though