My first thought when reading the article and seeing the pictures is that there's no way this design (as depicted) would work in Appalachia without enclosing and insulating around the bottom of the house. Otherwise, your pipes would freeze and the house would be way, way too cold during the winter. I was also disappointed that the article didn't go into the R-value of the house itself as that's going to be extremely important with regards to where the home could be built. I'm assuming it's probably pretty good, given that it's new construction materials, but I would not want to weather out an Appalachian winter in one unless it had been properly designed to withstand a harsh winter.
Auburn University is in Alabama. These houses are designed for the rural South. You don't have to dig down too far to reach the frost heave line (14" or less). The primary climate concerns are therefore summer cooling, storm drainage, and tornadoes. When there is a freeze warning, people let their faucets drip.
These designs could be used in Tennessee and North Carolina, but that's as far north as I'd be willing to try them.
But then again, it's a lot easier to dig deep holes for piers than a full basement, and you could insulate the underside of the house more thoroughly than is usually done.
