The design or the concept isn't new at all, but we still haven't seen any real prototype yet.
This is more looks than functionality, I really don't think you will be able to cram many features on a phone that is twisted and stretched like that.
The problem on this is that it's very elastic, there is no hard component into it, and if there is, there will be a risk of seriously damaging it.

Motorola plans to use electrorheological fluid so that the material becomes solidified when electric current passes through it, and when it stops, it becomes a fluid again. Even though many materials can be made flexible, or small thanks to nanotechnology, there are few components that are just too expensive to be made flexible.
The patent is filled as follows: "A user interface system for a portable electronic device is disclosed. The user interface system includes an interface that is made of a flexible material and has an active position and an inactive position. The interface is coupled with a reservoir. The reservoir is used for storing electrorheological fluid. The user interface system also includes a source that is coupled to the reservoir. The source is used for applying an electric field to the electrorheological fluid when the interface is in the active position."
SOURCE: Unwired View
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