Yeah exactly! Thinking back, the time's I've felt this the most is during stressful interviews -- e.g. I'm asked a difficult question and part way through my answer my nerves say "You've been talking for ages, you've lost them" but in reality it's been a perfectly reasonable amount of time and if I listen to my nerves I risk cutting the answer short.
I'd actually love a tool like this for interviews -- if had a mac or there was a linux build I'd definitely use this.
Re: Colours -- If I were to use this for this use-case (next time work gives me a mac perhaps) I think the current green -> red arrangement is fine as-is, as it covers both use-cases (if red -> too long; if green -> still have time)