I just bought the mustang from madcatz for a sweet $50. I've been playing real guitar for about a year and there is nothing wrong with it. It feels great. Can't go wrong, especially for the huge price difference. Do yourself a favour and buy the mustang and used the money you save on something else.
There is also this:
I know there is an iphone/ipod app for multiple simultaneous string tuning as well.
Basically, I'm saying don't say it isn't possible do to real-time (or close to) guitar midi without a midi pickup with today's PC horsepower. It is possible. I really hope someone pulls it off. I think we need to do some experimentation on this forum for this.
well, rocksmith doesn't really pick up multiple notes either. i believe it works by comparing the audio waveform as a whole coming from your guitar to what the chart for the song is expecting, and gives you credit if they are close enough. it's also pretty easy to fool RS's chord detection.