I saw this and it pleased me.
In general I think the whole "GAME MAKES LEVELS BASED ON YOUR MUSIC" genre is terrible. All the shmups that do it are boring, Audiosurf is boring. They make these faceless levels with no design that are just not very engaging to play.
But I think the idea of a free falling game where the music creates obstacles you have to dodge might be a little more engaging. Then again it probably won't. There is just an inherent problem in making randomly designed stages.