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I'm at work so I cant see the image you posted, but is this the display similar to the moocow drumming package. Is the interface red? I may/may not have seen it on Youtube. If it's what i'm thinking of (Youtube Iband video) I want it baaaaaad!
Since no one else has jumped in to say it, I guess I'll have to:
NO STAIRWAY!
But seriously, that is a wicked cool app. As a guitar player, I can't wait to give it a try, although only 3-4 frets of visibility doesn't leave much room to really play songs (save for chords), what more do you want on a freaking phone??
I've been following this on MooCow's site - and it looks very nice. Much better than PocketGuitar. I play guitar, and I can tell I'll be able to play songs with this.