But is it more than a single generation??.

I can't see anything that says the shape of the original generation is passed onto the "off spring". 

While they are building new organisms, what does this second generation do?...

They said they shaped the first generation into "C" shapes as it allowed them to efficiently collect up more stem cells to compress into new organisms, but all the "off spring" appear to be round and hence incapable of any subsequent "replication"