The “Black Standard” for binary clocks (2007)
romanblack.com
romanblack.com
Swatch sold watches with this, but not very many of them.[2]
[1] http://www.swatch.com/en_us/internet-time [2] https://en.wikipedia.org/wiki/Swatch_Internet_Time
While you would not get the exact number as quickly, you would soon learn that having a bunch of lights on the right side of the display is "late" given darkness.
In fact, as the lit region would anyways be contiguous, all that's really needed is to show the leading edge of the region which I guess you could do with some kind of needle or rotating pointer, and you'd always know the time past the hour at a glance.
Something similar could be done for the hour with a little thought, I believe. Maybe as a proportion of the day, or you could again increase readability by limiting to proportion of a half day, as I think people can instinctively tell whether it's +/- 12 hours of any given hour.
However, the on-off indicators shown here seem more precise, if less readable at a glance. With a bit of additional logic, a clock could translate the current time into a set of lights that could form rudimentary digit representations, providing an instantly readable time. Some rough sketches suggest that around 7 oblong lights or "segments" per digit could form readable, unambiguous decimal digits; the leftmost digit of the hour would only need two of those, making a total of 23 "segments", or more if showing seconds. Somewhat more than the binary version, but far more usable.