It looks like an interesting proposition, but as @cosmicbike says, a bit of a solution looking for a problem. In particular, I think that it won't be able to clean a dirty chain, so you would still need the rag.
I'm normally much more forgiving of these daft ideas than most of you. I quite like daft ideas. But not in this case.
It's a small, portable means of applying lubricant to a chain. In what way is it better than a dropper bottle? And it will be somewhat wasteful as the sponge will retain a whole lot of the lubricant, unlike a bottle.
Am I missing something here?
OK maybe it's a bit quicker, just whizz it through instead of applying a hundred and something individual drops