What is the microprocessor, and the servo system, using for sensor feedback? It has to know where it is in the groove at all times. I'm betting the sensor I'm looking for is the stylus which is then sending minute pressure changes, most likely to an A/D, then into the microprocessor. Yes, it is hunting/reacting constantly even if it isn't audible.
At some level the hardware or programmer implements some kind of thresholding on both the lower and upper bounds. (You never want the arm to suddenly jump across the room. ;-)) In the mean time the stylus is plowing along hitting the snow banks on both sides just like a snow plow. All that has been accomplished is digitized following, not tracking.
I'm not saying it can't sound good, maybe very good. I just don't see the need to complicate something as simple as tracing a groove when there are several tonearms available today that have exceptional bearings, that can be set up repeatably and don't need the help to track most any grove. I'll just remain optimistic, but skeptical.
BTW, I'm proud to say I'm not an audiophile. :-)