I'm thinking that the response to shouting and hitting is a bit off - people don't usually stop responding after a single hit or one loud statement. Kids would hit back, or yell back, etc. The reponses just aren't practical. Of course, you don't want to make a device that hits back, or bites, or smacks you, or screams!
It could be useful if you wanted to introduce a pet into the family - it would teach the child how to pet gently, I would think?