Check out this video:
http://www.youtube.com/watch?v=ACpS-GNXiqw It's a factory tour with Jens Ritter (Ritter Basses), and he always have some cool concepts with LEDs. Jump the video to 10:30, and look when he turns on the LEDs on the colored bass. Sort of like the LEDs you posted, I think! (The whole video is cool, if you don't know nothing about Ritter basses).
He made me a bass in which the LEDs only light up when you press the string against the fret (only the LED between the frets and the one before turns on). Basically, the lights follow your hand. It's a mindblower feature! And tapping can give epilepsy to those watching closely!
Greg
