I installed this, and tried it out for a little bit. It looks like it has promise, but I don't think that I will use it. I don't see the need of having a separate process to running all of the time to search though log files. I am happy to do the searching my self with grep.
Maybe if I had to watch over many different machines, this would be more useful. One thing that I would love to see is to be able to network different Splunk installations, so all an administrator would have to do is look at one machine to see all of the log files for the whole network.