The problem with such a system is that it wouldn't account for items which have been left in the wrong place by guests or poor zoners. I've only been on the floor a few times, but every time I've had to answer a price check for the GSTL, it was because an item was in the wrong place.
That happens with the paper label strips
LED label strips would be amazing. The cost would be INSANE. I have no idea how something like that would ever be cost effective. I guess they could sell flashes, color spots, blinks, and other effects to the individual vendors. Sheesh. I just increased the price of merchandise two-fold. LOL.
Cost would be insane but in the long run it would be worth it and not as expensive when you consider the cost of the paper, the machines to print it, the labor etc.
On top of that planogram no longer needs to spend time removing the old labels and putting new ones in, hours that could be used elsewhere. Here is an idea that would make that even more efficient, when plano scans a product to put it in its new location the LED on the strip will start blinking (or numerous LEDs if more then one location).
Another efficient use would be the real time pricing, price accuracy and all the hours saved from no longer having to put up or takedown ad signing.
In the beginning the cost would seem too high but in the long run target would save and make so much more.