Well, Focus is free and appears to do more, so I have to recommend that over this. As for the approach itself, yes, it might sound foolish, but some people are visual-iconic, and it with a kazillion windows open, it can be much faster to figure out what's up by simply glancing at a large icon. That's why Macs are so wonderful; they offer a variety of approaches for different people's learning styles and cognitive processing orientations.

Absolutely ROCKS MY WORLD!

Applidude method: a nifty window, using only a small portion of screen real estate, constantly reminds me which application is active.

Default Mac OS X method: forces me to glance way over and way, way up in the left top corner, note the position of the Apple icon on the very left of the menu bar to orientate myself, and then, keeping my gaze on the menu bar, look to the very right of the Apple icon, where I could finally read which application was active.

Please Apple, buy this app, hire this developer, do whatever it takes to get him in the infinity loop before Microsoft gets to him. One can only imagine what improvements the Applidude developer will conjure up for keeping the user aware of things like time, date, bluetooth status, volume...my GOD the possibilities!