With this video, Jason Osipa of Stop Staring fame made a really good animation rig, capable of providing animation which totally duplicate the movements from the early days of handdrawn animations.
I can figure out how to do most of the stuff there (apply lattice deformers after the blendshapes and skincluster in the deformation order, it will first deform through bones, then blendshapes and then through the lattices, making it real squishy like in the old style cartoons).
I even have a link to a tutorial on how to make the arms and legs bend even while stretched,
http://www.duncandonuts.co.uk/bendyarm.html
(Just add a extra controller for the elbow cluster to make them wobble as well).
But what continued to baffle me are the zipper lips. You can see the demo in the video during 0:25 to 0:36
But here is a picture.

Is there a motion path, moving along with the side of the mouth (follicle will keep track of the vertex), with a softmod deformer in between, which you can move along the deforming motion path and alter in strength, to bring the lips together?
Or did he do it another way?