There are tens of reasons why you might want to put the brakes on hard mid-corner - cornering speed misjudgment, road debris, critters, someone stopped in the middle of the road, whatever.
KTM/Bosch are pitching this as a revolution, but I think it is more evolutionary. ABS systems, from the very first, have been able to prevent loss-of-control accidents while cornering, but the chances the ABS system would release the brakes enough to regain traction before you crashed went down rapidly as lean angle increased. What KTM/Bosch are doing now is incorporating a lean angle sensor into the picture which gives the system a much more hair-trigger response to any sign of wheel locking while leaned over. I doubt it would allow you to have the bike scraping a peg and then hammer the brakes, but I'm sure it opens up the envelope much further.
Incorporating lean angle sensors (and soon pitch and yaw sensors) into braking and traction control systems of bikes is the next big thing. The S10 doesn't have it (yet) so we're not cutting edge. That being said, the S10 has VERY good brakes and a VERY good ABS system. The KTM/Bosch system is a genuine advance, but it carries, as these things always do, the usual burdens of cost, complexity, and to some, loss of mastery of the machine.
- Mark