Yes, I have seen the video. It was a commercial to promote the iPhone and the story about the band's equipment being stolen was actual fictional.
The thing is that, you can't really perform any solos or do anything much with an iShred because you mostly play chords and I wouldn't want to invest USD4.99 on an app when I'd rather be playing my real guitar and practicing on it. But I do, however, admit that iShred might be a handy tool if you're trying to play by ear some songs since they got a chord library ready and you can easily put in the chords and strum to see if it's correct. But that's as much use as I have for it.
Thanks Dodgethis, I saw the app. But it resembles Guitar Toolkit, except that the price is a lot more affordable. But Guitar Toolkit also has got stuff for other instruments like Mandolin and Banjo...although what I really need is what you just provided because I don't play the Mandolin or Banjo, just the guitar.