As the type 110 cassette forms a kind of of body in its self, it only needs a lens/shutter, a barrel, a wind knob, a release and a aiming aid to make a camera out of it. That assembly can be extremely small. Smaller than the cassette itself.
Your sample forms a nearly complete body and has a optical finder. I like the wind-button.
Yes, you will need le 110 cartridge film for your le mini 110 camera. I had one that was even smaller and it took surprisingly good pics. You never have an excuse not to have a camera with you once you own one of these.
They didn't say they WOULD make it, but rather that they could as they had the necessary machinery. But as Lomograph have re-introduced 110 film in several emulsions and there was also a year or two back another company selling it, with a strange name, there wouldn't seem much point in Ferrania doing so. It might make more sense for them to make 126 film (fingers crossed) as no-one has made that for several years, the last manufacturer having in fact been Ferrania.