Is this type of keyboard logging a real threat?

http://www.techworld.com/security/news/index.cfm?newsid=105943&email

Can you visualize any scenario where this would actually be worth the effort?

There’s not much detail yet on the actual process, so I’m not sure if it’s easy to pinpoint a specific keyboard or not. My guess, it’s not. Therefore, unless you’re focused on a specific office with only one keyboard in it, I think it wouldn’t be a very feasible method.