I had one of those tiny Sony Vaio's that did the same - great idea and tech but did you ever use it in comparison to the state of the art from Bose etc? It was night and day - the Sony was barely better than normal ear buds on an aeroplane...
I agree, I remember it being very poor compared to my Bose aviation headset. Still was a cool proof of concept. I imagine with the right software/hardware it could work just as well as external ANR