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Yes, it is exactly like thatYes, but it's still just digital data, in the end. I linked to a discription of the indieGS2K because it has an interesting way of recording 12bit raw and re-encoding it as a 10-bit 4:2:2 data stream that is output to a standard HDSDI port. You can then capture this feed via the usual means (Hyperdeck, etc.) but if you just tried to view it as-is, you would see a garbled mess, because the camera is only using the 10-bit 4:2:2 as a generic data container. Once you have the video stream in your computer, you use their proprietary software to reverse the encoding and get 12-bit raw as a result.
My guess is that the Magic Lantern devs might be considering developing something similar to that in order to get around the bottleneck of having to write all of that raw data to CF cards, or otherwise overflowing the buffer. Samuel, is that more-or-less it?