Why would you start with that? Particularly since some of the best "digital pianos" are actually just MIDI keyboard controllers (weighted and all that) and don't actually generate any audio themselves?
My understanding from OP's product is that there is an inherent assumption that this is targeted towards people dabbling on standalone digital pianos that also typically have built-in synthesis/sound modules.
Anyway, I'm just giving my reasons for why wouldn't you start with a software approach to answer your question. Putting all that aside, OP's solution is really cool and, independent of the decision to go custom hardware, it seems like a great product solution for the problem it's solving.
This device is a hardware solution. Hardware solutions are very popular in the music technology space, because nobody really wants to be screwing around with their laptop or whatever. A software solution that did the same means a computer that is running with a mic, preamp and audio interface at all the same times as the person produces sound.
The product in TFA has no dependence on the presence (or absence) of synthesis in the keyboard unit.
I'm suggesting that the user's phone that they already need (since the hardware pairs with the app in the article) is the hardware in this context. A phone already has a microphone and--if the environment is too noisy- many also support direct audio input through the phone's charge/data port with a simple off-the-shelf converter. Most smartphones can perform real-time audio progressing nowadays.
The trade-off is that midi is going to be lower error than an audio processing algorithm and much easier to implement out-the-gate, while it's certainly a step-up in the software engineering needed to develop and implement an audio processing algorithm to implement pitch/key detection as well as capture relative timing and velocity.
Correct the product in the article has no dependence on synthesis, but in pretty much all contexts in which someone will be using the device, there will be a corresponding audio signal present. Most people don't tap out music with a midi controller just in silence/without some sort of synthesis in conjunction.
Only way this works in software is if you dedicate a device to always record and audio processing doesn't provide isolation. Ambient sounds may get picked up or loud noises could drown out your playing.
This item works, because it is hardware. I also wonder how this would work connected to something like the sonuus G2M V3. Would be nice if the audio processing was solved by someone else.