No, you can't regrow memories. In fact probably the result of such a therapy will be a very different ability gained than what was originally lost. But an ability gained is still better than nothing. Already in animal studies cognitive and functional abilities have been regained following stem cell implementation into damaged areas of their brain.
A human trial was conducted last decade involving transplantation of neurons into a man's brain with parkinsons disease. He had an almost complete recovery of all his motor symptoms despite not having a large injection of stem cells. (I believe it was a phase I trial.)
http://www.neurogeneration.com/pdf/Levesque-MS.pdf
Well yes, a big problem with stem cell implantation into human brains is that intracranial surgery still involves damage to the brain as well as a host of risks.
This method could eloquently bypass those risks.
Also neurons signal to stem cell neurons how to integrate into the network, so a lot of the work is done for the scientists, they just have to get the stem cells there.