Interesting. There is a lot of R&D out there dealing with playing music. This sounds like much of that work is headed for consumers.
I'm not sure whether I would want it either. I'd love to have a play along that reacted to me in real time, but as a bass player in a rhythm section I get much better practice trying to stay with a metronome or drum machine or something else that does not reward me varying the tempo. And as a bass player, I am going with the changes and I'm not sure it helps if the "band" reacts to my errors
Using a guitar as a MIDI controller is not new but it still seems to me to be a niche product.