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So you are saying that this is the Segway of musical instruments.

My first thought was that they looked like the cantina band from Star Wars.

Someone else was thinking along the same lines:

Those flashing lights are simply the way the device communicates with the user. (Presumably) in the absence of haptic feedback on the controls the device needs to feedback what it is doing to the user visually. Without screens the current method of doing that is through flashing lights. Controlling pretty much anything complex and electronic will involve some flashing lights.

It looks as if some serious thought has been given to the usability of the device for music production. If the device succeeds in allowing the musician to produce more complex, interesting and diverse sounds, everyone will be playing one, and you'll be eating your hat ;)