This is one of those touristy things that sounds so hokey, that you almost feel like you have to do it. If anything, I sure love the motto displayed on their webpage - "Take off to your dream destination".
The Time Elevator is a 3D multimedia simulation, which allows you to "experience" 3,000 years of Jerusalem's history. Similar to a ride at Disneyland, visitors take a seat in the special theatre with moveable seats, that allow you to "descend" through history and "fly over" Jerusalem. Combining panoramic film, special effects, and an engaging movie, visitors get to feel like they are participants - rather than spectators. To help facilitate an international audience, they provide surround sound headsets so you can choose from eight different languages to hear the show..
What's especially cool is that the theatrical "tour guide" is none other than Chaim Topol, who was the star in "Fiddler on the Roof". He leads visitors on an action packed jaunt through the history of Jerusalem, where you are witness to crashing ceilings, splashing water, and other special effects, as you learn about history of Jerusalem - from when the city was ruled by King David to the re-unification of the city during the 1967 Six-Day War.
I could see how this would be a great way to introduce your children to history in a fun and educational way. This would be a great add-on to a Bar Mitzvah trip to Israel.