I have never actually come across this before. Then again, I haven't been proactively looking.
I have had a quick look and came across the below quote, in one of John Mueller's Google+ Blog Posts:
Google supports the use of JavaScript to provide titles, description & robots meta tags, structured data, and other meta-data. When using
AMP, the AMP HTML page must be static as required by the spec, but the
associated web page can be built using JS/PWA techniques. Remember to
use a sitemap file with correct "lastmod" dates for signaling changes
on your website.
I am not hugely familiar with JavaScript but after looking at the Source Code, there is static content within the <title>
Tags. As such, I would assume this is the information used from an SEO standpoint. I could be wrong on this, if it turns out JavaScript is able to manipulate Tags prior to rendering.
In terms of its actual use, I do not see how it would be useful. Following on from @closetnoc's Comment, I feel this is just a case of being fancy for the sake of being fancy. Showing off in other words! :-)
Scenario:
Say you have a user jumping between Tabs, they then look for the Tab they were originally on but it has changed. You would run the risk of the user thinking it was a Pop Up etc and simply close the Tab.
It is also known that Fraudsters implement JavaScript as to cloak a website when a visitor is jumping between Tabs. Whilst not familiar on its entire implementation, I am aware it does exist.
The collective point being ... Don't risk confusing people, or doubting your site's credibility, for the sake of something fancy in the Tab.
Statistics:
I would be interested to see any statistics on this, however. Has anyone implemented this approach and noticed any tangible benefits?
Side note: Don't forget, anyone with any JavaScript Blocking software, such as Ad Blocking Software, won't see this anyway!