You're right, it does. But in fairness, it's a demo for webkit browsers. I'm guessing the author wasn't too concerned for IE.

If the demo page was something super simple like:

#links{ -webkit-transition-duration: 0.5s; } #links:hover { color: red; }

Super simple and it wouldn't break anything.

Basically, just because the author didn't consider IE users on a Webkit demo doesn't mean CSS3 is broken (or doesn't degrade properly.)