I think it is probably using standard X virtual desktops.
So when you slide, all that is really happening is a bitmap is taken of the current desktop, and transitioned to a bitmap of the next desktop, while behind the bitmaps the actual widgets are being rendered. Once the slide completes, the bitmap is removed to show the real desktop underneath. It is an illusion. The reason I bring this up is it may appear to be just a case of switching off the "slide and stop" way the current desktop switching uses so you could have half and half for example, but it isn't really working that way - you could not interact with the widgets because they are just images of widgets.