Nice. Someone should do an emacs just so we can see the look on Steve Yegge's face. Combining JavaScript, Firefox, and Emacs might make his pants a little damp, if you know what I mean.
This was originally designed for an email client at http://demo.internetconnection.net/netmail/ and was originally going to be the editor for it. That is, "emacs" mode was going to be the default for people who don't know vi, not a vi-script that was trying to cater to emacs users.
However, the textarea itself was fine, so it just became an option in the settings manager to "enable" the vi editor, and the emacs-mode kind of got forgotten.
It traps all my key presses! I use Vimporator in Firefox and this kills my ability to do that. Maybe if there was a sort of meta-escape, that escaped you to browser shortcuts, but I didn't see one.