This has been tried before.
Eddy current fields decrease as A*e^x from the surface. This will work only for very very true wheels.
Secondly the lights are only visible from one side.
absorbs magnetic energy from the wheels?
Riiight.
There is a lot of mixing of terms here that indicates they don't really know much about what they're doing.
I do however think that the brake light function is very cool.