As far as I understand it, this time slicing is the same idea already used in Valve's Source engine for entity thinking. If you have a look at the free SDK, each entity has a Think() function, and a flag indicating whether it should think this frame or not. Inside Think(), each entity can inform the engine of the next time it needs to think (e.g. 1 second later) via a SetNextThink() function, and the Think() function will not be called until then. Internally the engine maintains a priority queue based on the next time of thinking.
I also read about the idea of a LOD-based (spatial or other) priority list recently, probably on entity-systems-wiki.t-machine.org, although I do not know of any actual implementation. But it seems promising indeed.