I think Juice is closest so far....
In the simplest terms, matching acoustic impedance between the diaphragm and the air gives a greater transfer of power from the air to the diaphragm, which amounts to simple acoustic gain.
However, this gain is important because it is relative to the physical properties of the microphone, which means that relative to this gain, the general constraints & related artefacts of the diaphragm have gone 'down' by some 15-20dB.
Or, more simply, by raising the impedance at the microphone diaphragm we more effectively restrain errors/distortion such as diaphragm resonance.
Or, you can consider that the mass of the diaphragm (as constrained by sprung restraints) is relatively reduced by the same factor as the acoustic gain is raised, as is the restraining force of the diaphragm restraints. So the diaphragm is (relatively) more free to move against the restraints.
I usually describe this as enhanced damping.
Anyway, whoever said that time domain & frequency domain are traded off against eachother is on the right lines but not quite correct.
As was also mentioned, this microphone is designed to be 'post-equalised' or callibrated. Of course, the acoustic horn does not provide a flat frequency response but what it does is ensure a time-response that is so free of resonance that the post-equalisation is essentially transparent and brings the microphone to flat.
If you take any of my recorded samples and sweep an eq accross them, you will find a very different response to the eq than that of normal recordings. This is due to the lack of interaction between diaphragm resonance and equalisation. Something like boosting a 12k shelf on a great ribbon mic but even more so.
I hope that's not more confusing than it is enlightening! The samples on my site illustrate better the advantages of this time-domain improvement (dynamics/clarity/material resonance signature differentiation/etc).
Andy
PS, there is a little more on these things over at my forum:
http://oswaldsmillaudio.com/forum2/index.php?board=10.0