Actually trail is increased; trail is the distance the tyre contact patch is 'trailing' the line drawn down through the steering pivot, moving the axle back would move the contact patch further back. Plus due to the angle of the forks, rotating them would move the axle clamp height lower further increasing trail. Wheelbase would be shortened.
I imagine it would make steering very heavy but with good feedback, I'd be interested to see how it does steer. I saw a bike with the same set-up at a Broadford Dirt-track about a month ago; maybe it's a new rage?