Hum, sorry to ask, but why would anyone accept to write some java code in such an environnement while it is so easy these days to allow screen sharing (join.me) and let the interviewee use the tools (s)he masters?
I think it's nice to be able to quickly run the candidate's code in your environment, without interrupting the candidate's flow. (It wasn't entirely clear to me from the demo, but it did seem like you could evaluate the code independently on your end without distracting the other person.)