Superfly displacement broken
It worked fine in the first version but now this feature no longer produces displacement
I just ran your set up and it displaced just fine. Superfly doesn't have micropolygon displacement yet so the model needs to be subdivided a lot (I used the hi-res ball and a sub-D of 3 to get a smooth result). One thing I did notice is that using the texture co-ords node didn't give same result as shown, but the base set up of math node, wave texture to displacement and an image plugged in to surface worked just fine.
So, displacement is NOT broken... but the node arrangement may not be working the same as before.