Eco-friendly coffee cups

MicroGREEN Polymers Inc. is making a new kind of coffee cup - and other eco-friendly disposable packaging made of recycled plastic bottles. (Read the Seattle-PI article). The intent is to make a more durable, efficient packaging to reduce the amount of waste (no more double-cupping at your neighborhood coffee shop) and to use a waste product to make it with (plastic bottles).

This is great - however this article doesn't mention how these new cups will be disposed of. Is it just going to pre-empt these plastic bottles from going into landfills by making them into cups first? Can these cups be reused or recycled themselves? I tend to side with the William McDonough/Cradle-to-Cradle stance on this matter, that using plastic bottles for an input, while initially dealing with this problematic waste, still means plastic bottles are being produced en masse.