The main difference is the design. BE keeps a hidden directory where everything is referenced by hash, which means you need to take the time to set up BE and have the client installed to use it. This is based on human readable file and directory names and isn't concerned with title collisions, which means that if you're stuck you can manage your issues with ls and cat (and mkdir, I guess.)
BE is probably more powerful and mature, but this is lighter weight, has no dependencies, and I find easier to use (possibly because I wrote it.)
I do like your approach actually, particularly as it could be easily expanded a little, e.g. to use markdown (or similar) content and present a web view (aka Gollum for Bugs).
Any chance you could be convinced to add support for Mercurial? :-)
I've been using it as a lightweight "What do I have left to do on this branch?" tool that fits into my workflow without having to go to an external service (ie. Redmine) or leave the terminal. The fact that it's context sensitive (it just looks for the nearest issues/ directory) means I can just do a "bug list" to get an instant list of outstanding tasks in whatever I happen to be working on whenever I switch branches or get interupted and need to remember where I was.
(I wanted to call it "context-sensitive," which is more accurate, in the title, but HN said the title was too long, so it became "distributed," since anything in git is "distributed".)
