The primary application of this project is research in to this phenomenon. By understanding how this mechanism works in nature, we can be able to replicate it artificially for a multitude of purposes. Synthetic applications can include pigment changing sheets and cloths. These can be used for multimedia, camouflage, or user customizable products.
But as a side affect of this research, we hope to end up with an organic display system. Given that this is a living device, a lot of applications just aren't practical. It's doubtful there are many individuals out there who want to be feeding their portable or hand held devices. But that's ok. Initial applications would most likely be in mounted, installed, or large table-top units, where they would have a permanent connection to utilities and a bulk nutrient stores. Such installations would probably be popular in science exhibitions or centers.
Regardless of the implementation (bio or synthetic), the advantage this has over current display technology is that it is reflection based rather than transmission based. This means that it relies of light reflected off of it (i.e. daylight) rather than transmitted light (from a backlight). This makes it ideal of outdoor use.