1. If users are NOT aware of being tracked, it is HELL creepy
2. Scalability is now not an issue :) I think your concern should be to find the first customer.
3. not sure
4. I think they would, but you need to make sure users are not creeped out by it.
5. Unsure. You might want to try both ways. Start marketing a specific use-case and see what happens (if it works, etc..).
By the way, what I meant with scalability is that if you have up to say 10-15 users at a time you can keep track of them easily, if it's more you either need more people or the whole monitoring station becomes worthless
Regarding it being creepy—I'm not sure how I see it myself.
In a way it's a lot more creepier that advertising companies know your tastes and have a shitload of info about you--sometimes more than you do.
At the end of the day we only track the HTML the site owner provides in the first place, and stuff like mouse movements within the page, without it ever being recorded.
On the other hand, I agree that the fact that you "see" the page being used and not just collect metadata could be deemed very creepy.
