I'm really glad to see that they're building a new UI from scratch - this has a lot of potential. I wish that there was a chance in hell that this would light a fire under Apple's QuickTime team, but they seem to be stuck moving at a snail's pace.
Plus, VLCKit could be a really great tool for Cocoa programs, since Apple's API migration roadmap to QTX just flat out doesn't exist publicly.
Personally, I think the term "vaporware" is best used when software is announced as the next great thing but no product actually ships.
Anyway... I don't think there is anything to worry about here. I just downloaded the source, built Lunettes under Snow Leopard and tried some of my favorite videos. There is no GUI to open some file types yet - but for those it can handle, everything seems to work and it does look great!
I don't want to sound negative but this is how most vaporware next versions are born. We have seen it happening way too many times. They have to be very careful to avoid the usual fate (fast forward 2 years there's still no release or if there is no one uses it because it has serious issues or is already outdated etc.) That being said, I wish them good luck and I hope to see the new UI soon.
Plus, VLCKit could be a really great tool for Cocoa programs, since Apple's API migration roadmap to QTX just flat out doesn't exist publicly.