Well, strictly speaking, this is not an equalizer, which would serve as a tone control, but a frequency analyzer with peak hold markings, which measures the frequencies present in the signal (or song) being played.
Is it just me or wouldn't this contribute to draining the battery? It's a great idea, but I'd never use it, mainly because I only look at my iPod's screen when looking for a song. Other than that it stays in its protective pouch.
Also, AFAIK, the iPod display screen can only do that one color, black, applicable to change by the contrast setting. I notice you have a lot of lighter grey outlines. I don't think Apple can do that with their current iPods.
But don't let your creativity get the best of you, man.