Yeah, at first I was like "WTF, this can't be real" as well.
But it's all definitely possible. Whether it's actually practical is a different question, but nothing here is impossible.
One should definitely keep in mind that noone is claiming that a machine could be infected simply by sitting next to an infected machine; the initial vector seems to be a buffer overflow triggered by a compromised USB device. Once the malware has gained access to the machine that way, then the magic bits with high-frequency audio signals used as net interfaces starts.
But all in all? It's a very very scary and pretty damn sneaky attack, one whose ingenuity I definitely applaud.