A test launch, flight and landing for a long range robotic aircraft the (sort of) utilizes a vertical take off and landing system, all be it a somewhat primitive one that requires a special landing and take off platform. Still, interesting project. Bigger than it looks in the video, seems to be about 4m wingspan. see: http://www.aerovelco.com/Flexrotor.html
Very interesting concept and launch/land method... I was half expecting the rig to catapult it into the air! But still, if something fails on the rig wouldn't the whole device essentially become unusable until it's fixed? I guess it can't be that difficult to repair seeing as how simple the device is...
I understand where they're going with it, the whole 'It can be deployed anywhere' scenario, but I've got to agree with you in that it isn't really that advanced, however I do fear something as simple as this may end up in the wrong hands and not be that difficult to cause damage with.
I've been talking about that sort of thing recently with a friend, about terrorist using some kind of drone to attack somewhere, but then they could have done that for years now with an ordinary light plane in the microlight class. Seems a lot of the terrorists we face at the moment want to be more hands on, be there at the scene. Or if you just mean as a general war machine for dropping bombs or gas, I guess it could. Radio controlled planes have been around since World War II though, so it could have been done for quite a while. I don't think cost is an issue for most war mongers, though perhaps having something small and more stealthy is useful. You'd still be limited on damage though because of the size and weight it can carry, though for recon they're perfect.