Aza Raskin's father Jef incorporated the idea in his design for the Canon Cat, released in 1987. Notably, he felt Undo was such an important operation that it deserved its own large key[1]. He discussed many ideas behind the design, including universal undo as an alternative to confirmation, in his book The Humane Interface[2].
[1] http://en.wikipedia.org/wiki/File:Canon_Cat_keyboard.jpg [2] http://books.google.com/books?id=D39vjmLfO3kC&q=undo