You should really read the book. A lot of the atomic operations seem cumbersome, because the unum doesn't have a fixed size representation, but you just get over that when you remember that the real problem is shuttling data over buses. More compute transistors is not a problem.
Now I think we can say some representations are better than others (at least for certain applications). It may even be possible that some representation with a given n can be better in all cases than a representation with a larger n. So an n equals 1 system will obviously be terrible compared to many systems with n around 30 or 60. But I'm not really concerned with that point, just the claim of being able to represent all real numbers.
In the book he talks about a simple unum with values -inf, less than -2, -2, between -2 ... -1, -1, between -1 ... 0, 0, 0...1, 1, 1...2, 2, > 2, and inf, also intervals like 0...2, -2...0 etc 1...inf, emerge when you intentionally use less precision.
This is a mathematically closed system that represents all real numbers and is even useful!
Not an expert here though.
Unums shouldn't be seen as better than ints, longs, floats, or doubles anymore than a double is seen as better than an int. They have different uses and strengths, and there are problems where none are a good choice. Perhaps unums are the best choice for some problems. Perhaps they are clearly and significantly better in some areas. But they should be thought of as an alternative to the existing formats and not a superior replacement.
They're also an inferior replacement in the case that you want to take advantage of highly-optimized hardware, and that getting a correct answer doesn't really matter. I don't see unums replacing floats for, say, video game graphics. But for numerical computation, it seems like the only real flaw with unums compared to doubles is the nonexistence of a hardware implementation, and the existing popularity of doubles.
It's not the same as dyadic interval math, it's kind of a hybrid.
A reasonable metaphor would be that you cannot draw all of the Mandelbrot diagram, but you can render any piece of it to any resolution you choose. Being able to describe it precisely, and to know the limits of your accuracy, is useful.
So assuming that he's saying anything at all, he's at least being imprecise, and the actually claim should be something like "represent any dyadic interval using a finite number of bits".
Anyway, I guess his motivation might be "you can represent any real number (with finite bits, and therefore finite precision)". In the book, he presents an interesting case: little 4-bit versions of the Unum that can represent:
-inf, (-inf, -2), -2, (-2, -1), (-1, -1/2), -1/2, (-1/2, -0), -0, 0, (0, 1/2), 1/2, (1/2, 1), 1, (1, 2), 2, (2, inf), inf.
Putting together a pair of them, the book outlines simple interval arithmetic (where pairs of numbers can represent any interval between numbers on the line above, and single numbers can represent some of the closed intervals as above). The reason these are kind of neat is that using the standard Unum algorithms (without any fudging), you can get "correct" (albeit terribly imprecise) results for many real number computations. Questions like "is there a number satisfying a numerical predicate in some range?" or the value of a trigonmetric or exponential expression will come out "correct" (but you might get an answer like (-inf, inf)). If things work out as well as he claims (and demonstrates for some cases), then you can basically do the math to figure out how precise you want to be and choose an appropriate specialization of the format - or take advantage of the format's flexibility and do computations starting at a low precision and increasing precision until you are satisfied. In particular, it's kind of cool that you can do computations with little 8-bit intervals, and possibly circumvent doing more expensive computations (e.g. if you test if a property will hold anywhere in the Unum range and it won't hold anywhere, assuming you (and Gustafson) have done the math right, you can avoid doing more expensive checks with increased precision).
Anyway, point is, the presentations are kind of flashy and misleading - and you're right, you can't represent any real number (just finitely representable dyadic intervals)... but the format itself _does_ seem promising...
Not sure how it would go, I think it depends if you maintain the precision or increase it after this operation. I guess 2 bit: (1/2,1)+(1,2)=(1,inf) (?) and 4 bit (2 exp and 2 mantissa?): (1/2,1)+(1,2)=(3/2,3). Maybe there's a built in check to compare how short your interval can get and stop at a reasonable precision (in this case there's no point going for more than 4 bits).
Honestly I find it quite elegant and is at least trying to solve a big issue with bandwidth limitations. I do wish the exposition was more clear/straightforward.
-inf, (-inf, -2), -2, (-2, -1), (-1, 0), 0, (0, 1), (1, 2), 2, (2, inf), inf, and both quiet and signaling NaN. They do not represent ±1/2 or use ±1/2 as an endpoint.
If you add, say, 1 to (1,2), you get (2, inf). The open interval means it does not CONTAIN infinity, but ends at a finite value too large to represent. If the largest positive real you can represent is 2, then (2, inf) is a mathematically correct answer.
Edit: here was the slide http://i.imgur.com/0eQvvK1.png
He's 1/3 of the way to three impossible things before breakfast by slide 15.