Actually there are several similar solutions out there already. Check out http://www.monkeylectric.com or http://revolights.com

Still, this is a pretty neat addition to this increasingly crowded bicycle light accessory space.

Yeah, I was also struck by the similarity to revolights (which, incidentally, was also kickstarter-funded). This one seems somewhat less effective (no forward or rear illumination, and no easy way, from the side, to distinguish the front wheel from the back to guess the direction of travel), but on the other hand, I suspect it will be cheaper, easier to install, and get you much more use on a charge.

This is really cool, and doesn't require car headlights shining on your bike like reflectors do.

When driving in my car at night, I would occasionally notice some bicycles with reflective strip around the tires. Car headlights just light them up, making it very easy to see a bike from the side. I finally found that many Schwalbe tires have this reflective strip (e.g. http://www.peterwhitecycles.com/schwalbe.asp third paragraph).

I saw a bike the other night with a half-dozen or more of those in-spoke reflectors. Very visible in headlights.

Continental also makes bike tires with reflective strips on the side. I got this shiny one: http://www.conti-online.com/generator/www/de/en/continental/...

It easily dismisses the need for the nori lights however good lookin those are.

Dutch law requires bicycles to have spoke or tire reflectors since 1987. In addition, reflectors on the pedals and a white strip (30 cm) at the back of the bike are also mandatory.

Pedal reflectors are required in the UK but it is hard to buy pedals with them...