hi Rodos,
to detect chords from polyphonic sounds is actually very simple, but it requires special hardware and processing.
Unfortunately it's even more expensive than the nice Starrlabs instruments, unless such a project results in real large scale sellings (due to the hardware).
It's a typical application for neural network processing which (simplyfied) just remembers the chord's structure from an extensive training process.
Opposed to that the common way on native CPUs with spectrum analysis is magnitudes slower and not very precise.
As a guitar player you know how many variations of the same chord exist.
I have one of the Casio predecessors of the Starrlabs stuff.
The microswitches under the frets work quite well, but the problem is the neck, which doesn't have enough resistance against a reasonable string tension due to the simple plastic construction and it doesn't transfer any bend information.
I left it as a project for some free time to improve the thingy, so it's at least usable for chords on gigging.
It just looks so gorgeously spacey
cheers, Tom