I heard some of the broadcast. From what I could tell the "Faux Harmonic" is a computer running the "Vienna Symphonic" sample library with some real-time tempo control. The sound was very impressive, but the sustained legato string passages they chose didn't reflect much of the challenges of a score like West Side Story.
Unfortunately this broadcast did little to clarify the situation with electronic music and live theater. The term "Virtual Orchestra" is commonly used to refer to any sequencer/sampler combination that can reproduce orchestral scores, regardless of whether it can be manipulated in real time. The "Virtual Orchestras" that are seen in some touring shows are designed to change tempo and hop around as needed in a live performance.
"I have got to have some professional music!" - Big Edie