
The schematic shows the electronics inserted into the axle (which Metigear takes care of: they'll sell the power meter inserted into a new pair of pedals) and an external battery/transmitter which fits on the crank arm (on the side opposite the pedal, wrapping around to the side of the crank arm).
Strain gauges are inserted into the hollow of the Speedplay spindles, along with electronics, transmitting ANT+ data to a head unit. Weight penalty = 25 grams per pedal on top of a Speedplay stainless steel spindle. Two pedals provide better power data (left and right foot separately, or the average) but if the extra 25 grams is too much, one pedal only is an option (this relies on pedal balance being fixed, something I wouldn't personally trust: the old Ergomo problem). Most of the weight is the battery, it seems. They'll also have a heavier (+25 gram per pedal) battery as an option for longer battery life.
Even though Frogs are spindle-compatible, they didn't have any Frog prototypes yet, but I personally see no issues with those. I also asked if it would handle negative torque, as on a track bike (after I yanked up on the display pedal, and it reported negative force). Yes, it can. I asked about Ti spindles. I think there was confusion, because I was told the Ti spindles lacked wrench flats and required a hex wrench be inserted where the electronics are, but my X/1s have wrench flats, so I need to check on this. Maybe he was referring to nanogram spindles.
They claim Q1 2010. Engineers tend to forecast the time it will take to solve known issues, but tend to overlook the time it will take to solve unforeseen issues. So maybe a bit later than that. Super-impressive stuff, however.