It does have this functionality, but so far we've used it in different ways. What you see in the Demo admin is not all there is, but since it's meant to customize, certain features aren't visible in this version.
My last e-commerce business was a fashion site (http://redtagcrazy.com/blog) built on a custom platform, and we dealt with variations of course, but so far only one of the early sites we built on the platform needed this feature (and they have it).
Edit: I would add that Forward aims to be full-featured, and anything you might reasonably expect out of the box in something like Magento, will be available in one form or another.
I have also built totally custom ecommerce platforms in the past (getbuckyballs.com) and I understand many of the difficulties involved. I think you guys have done a great job with this, I hope I have a project that can use it.
My last e-commerce business was a fashion site (http://redtagcrazy.com/blog) built on a custom platform, and we dealt with variations of course, but so far only one of the early sites we built on the platform needed this feature (and they have it).
Edit: I would add that Forward aims to be full-featured, and anything you might reasonably expect out of the box in something like Magento, will be available in one form or another.