The tealish stripes are fondant and the flowers on top are made out of gum paste. Gum paste is like fondant but it can dry much harder than fondant.
I think that having fondant and gum paste accents on a buttercream covered cake is a great alternative to having a cake completely decorated in fondant for a couple of reasons. Reason one, I don't think fondant tastes that great, and yes people can peel it off but buttercream is just so much more delicious. Reason two, I think it is really cute! You can still do everything you would do with a fondant covered cake. Reason three, it is cheaper, I know some people are not concerned with this, but for those of us that would rather pay less, you get a better tasteing cake for cheaper, and it can look just as great! Win Win Win!