So, yes, for those few bikes that don't have conventional brakes, this lighting system may be an option.
That doesn't change the fact that this product will be useless to the majority of people who might purchase (sorry, sponsor :-) it through KickStarter, at least without sacrificing the ability to stop.
The fact that this isn't called out in the video or text is deceptive. There's no way he isn't aware of this serious shortcoming.