Yes, there are other and better guages that would probably be better suited. I think this would be better suited for people that already have an ipod and wouldn't want to spend more money on a scanguage. Besides, if some one already had an ipod, this would be so cool just to pull it out and and connect it.
As for tailored instrumentation, I know for my car ('95 Saab 9000cse) there's a website ecuproject.com where you can actually reprogram your own ecu and connect to a car comp with a few connections and free softwware that would display all of what the ipod hack would do plus more. I think the Civic's have their own site for something like that also.
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