Its isolated enough to be safe. With both hot and neutral wires having a cap on them, it allows the circuit's DC component to float to match the chassis/person handling it. As long as the capacitors are small, they will not be able to transmit enough AC current through them to be able to do any damage. In fact, I'm quite sure the little USB wall-plug adapters for your cell phone use capacitive coupling the same way.
The forum you linked did bring up a few good points, although a little bit of an overreaction. Probably want some higher-rated capacitors on the mains end. Also, the linked PDF do