As for full size Guitar Hero and Rock Band controllers, there is a market for them, not that I am on board with scrapping your LP or what ever to make one.
Relicing is a tricky subject. Some poeple (myself for one) like beat up looking stuff. But is it worth an extra grand? I'd say not, since Axl offers their Bad Water series for about $150 each. That's not an extra, that's the entire price (btw I think they are pretty ####ty guitars, but that's not really my point). Fake relicing has it's place, it's just nicer when people say, "yeah, I like it that way." instead of hoping for bonus mojo.