OK, y'all. As far as I can tell, this is how the whole thing has played out.
John McGrath, the lead guy, is damn rich. On a whim, he decided to buy a $6,000 FLIR E50 or E60 (other possibilities there) or just acquired one somehow. (flir. com/cs/emea/en/view/?id=41372) He found it pretty neat, and had the childish thought that he would make his own and mass produce it for less. (Kind of like what the guys in October Sky were thinking, but far more moronic and petty.)
This sounds very much like the better half of the projects / startups I've been involved with. They all have this very fancy presentation, pictures, 3D model, video, website, etc. During the interview you cannot help but think that if they have been able to accomplish all this, then what the heck do they need me for. Once I sign the NDA, they hand me a product or manual from a big established "competitor" and tell me that they want me to create a better and cheaper product than anything else out on the market. Sometimes they combine the manuals from several existing competitive products. When I ask about all the work that they had already done, they would say it was only for investors or marketing purposes only. As I dig in, I soon also realize that they had already sold X number of units and promised to ship in 3 months. So while the established "competition" spent millions in R&D and many years to develop their products, the startup founders expect to do better in 3 months with a single consultant. As for themselves knowing how the product is supposed to work or the requirements, they don't have a clue. They expect the hired consultant to figure everything out.
On a number of the projects, I've been able to succeed. But it took far longer than 3 months of dedicating my life to the project and with constant haggling over why the project is taking longer than 3 months, haggling over getting paid for the 80 hour weeks, constant feature creep because the competition added a new "must have" feature, finding excuses that they could tell their customers, fighting with vendors and distributors over parts cost and availability, and all of the associated stress.
For these guys, it is possible to find a brilliant consultant that could create the product for them. So there's hope, but they will also have to make sure they don't run out of money before they find the consultant or at least still be able to convince him/her that there will be worthy compensation for the effort.
I was just recently asked about exact same type of project idea, but for medical ultrasound imaging. The brilliant idea they have is that most of the cost of medical imaging is in the display, so if they replace the graphical display with an iPad, they could produce it for a fraction of the cost. Just design an ultrasound probe that we could plug into an iPhone or iPad -- it should be easy with an Arduino. What's next? CT Scan or MRI anyone?