The bigger problem is that it still has 90% of Erlang's semantics, and that turns out to be just as different in Ruby-like syntax as it is in Prolog-like syntax. I should note that this isn't a problem for me, but if the aim is to make the language more familiar to others, the syntax change is not much help.
My team and I evaluated using Elixir for game scripting on an Erlang-based engine, but ended up passing because if we were going to teach the scripters Erlang semantics, we might as well just use Erlang. We also looked at LFE and came to largely the same conclusion.
But, I applaud the effort and I plan to keep an eye on the project. We need more of these kinds of developments on BEAM, and hopefully some of their good ideas will trickle into the Erlang language itself.