More information is available at: http://downloadify.info
The component is called Downloadify and is available for use now! You can get involved by grabbing the source and making improvements over on Github. It is open-source under the MIT license. Currently the component only supports text-based file formats, but I am looking to add binary support in the future.
Still Confused? Here is a quick introduction:
I really want to thank Timothy Smith for the voice-over and audio production!
Finally, I have updated what used to once be a Ruby+Sinatra app, Starter for jQuery, and have turned it into a straight HTML app that runs fully in the browser. It generates the code and the downloadable files without ever touching the server.