In short, it makes the learning process easier from the start, and less boring for younger ones who might not have the patience and stick-to-it needed to master a normal guitar.
I'm not sure what the interface will look like, but imagine the possibilities of displaying tablature along with musical notation along with what notes you're actually hitting, perhaps even with a photo of the desired hand position for a chord, all simultaneously (or easily accessible).
Then, add training modes, (like guitar hero but with a full metronome range), technique exercises for scales/arpeggios, etc... and you have a powerful training system.
http://globalnerdy.com/wordpress/wp-content/uploads/2007/07/...
I have great hopes for these sorts of products, and think teaching instruments via games is simply the low-hanging fruit of a bigger idea. I think using technology to improve learning is a woefully unexplored area, and that learning is a sector that is ripe for some serious disruption. I don't think textbooks or lectures are an good or efficient way to learn, but we're still using those same methods that have existed since time immemorial without strong emperical evidence simply because it's the status quo. Meanwhile, technology and our knowledge of neuroscience and psychology have improved beyond all recognition, yet they are massively underutilised in terms of helping people learn. I can't help but feel that one day all these dots are going to be connected and it's going to dramatically change how we learn and educate for the better.