I believe it - there was a company many years ago I think called MicroTouch who modified CRT iMacs to have touch screens. They would disassemble the machine, apply a touch sensitive surface to the display, which would connect via a USB port, and then sell it to a business as a touch screen enabled iMac. These would be used as information kiosks, and just about anything else that a business would have a touch screen for.
Notice there seems to be something coming out of the side of the iMac? That would be the USB hookup, I'd imagine.
But yeah, I'd imagine its the real thing. I remember reading about these in an issue of Australian MacWorld back in 1999.