This has many potential uses for both good and bad. It basically takes the old concept of secret tracking devices and tries to make them into security commodities for everyone to enjoy.
Personally, I just wish it was small enough to put on a dog or cat collar. I know the authors claim it is supposed to help with property theft investigations and recovery. I see a far larger market and demand for surveillance and mischief. I searched the site and found zero mention of privacy controls or protection.
In an ACM SenSys 2010 paper, we present AutoWitness, a system to deter, detect, and track personal property theft, improve historically dismal stolen property recovery rates, and disrupt stolen property distribution networks. A property owner embeds a small tag inside the asset to be protected, where the tag lies dormant until it detects vehicular movement.

More to the point, from a market perspective, if we accept the commodity of electronics as a general argument then an encryption and backup/restore strategy is far simpler and less costly than tracking, capturing and recovering stolen electronics.
When someone grabs your iPhone and makes a run for it you will probably have a better piece of mind with encryption and recent backups than with trying to chase and detain the attacker. As someone at the RSA Conference said after he left his phone accidentally in a Taxi “even if I could get it back it would probably be bricked”.
Information is not really that much safer with the AutoWitness control option. It adds marginal value versus other controls and can actually introduce new risks. As an inexpensive device to monitor someone, on the other hand, it provides a *new* source of information — can add significant value at a lower cost than with other controls.
Nonetheless, just like a lot of the other forensics and investigation tools, I bet this will continue to be marketed as a disaster recovery solution.

