I thought it was the difference in the screen refresh process why lightguns couldn't work. I don't know how it works, but I asked someone I figured would know and...
This is what I was told: A CRT refreshes left to right from top to bottom, line by line in sections, but an LCD refreshes the entire screen at once... So, a Lightgun can't tell where you are hitting or not because there is no dark to light change for a hit which a CRT is capable of, but an LCD isn't because of the refresh method difference.
If that is true, then this device would have to chop up the entire screen refresh and emulate the CRT method refreshing the entire screen, but withholding image data... If you have a slow refresh LCD, that result could look utterly terrible.