Link

Has anyone ever heard of this stuff and does anyone know if it's suitable for our hobby?

From reading at the link you provided the material seems to be similar if not identical to Crayola Air Dry Clay. I'd say it has great potential for creating bases, especially 1/72 scale. I've been experimenting with the Crayola product and it seems to have good potential. Even smaller objects like stones, blocks, masonry fences should be no problem. If it seems to dry a bit while working it, just add a bit of water. Depending on the thickness it takes about a day or two to dry solid.

Hope this helps,
tread_geek