There's an inherent flaw: the translations are based on our observations. So the device, at best, creates accurate translations of what we'd believe the dog is intending to say. This is a major communication barrier.
But it's certainly fun. Maybe more? Certainly it could be a step on the way to more.
Edit: thinking about it a bit more, the problem is that it isn't two-way communication. I wonder if it will ever evolve to allow anything like a conversation. One very odd thing is that it's reading the dogs thoughts, not "speech".
Also, does it intend to stop barking? If so, how? I mean, will dogs magically stop barking because they understand that they're making human noises? Seems odd. I guess that idea is that it clarifies why they are barking so you can solve the problem faster. ...assuming it's accurate and that you want to solve the problem at that moment. Do many dog owners really have a problem understanding, for example, that the dog wants attention? I'd imagine not.
I wonder what Con Slobodchikoff (the prairie dog guy) would have to say about something like this.