The use of the right angle is important, since a lot of scanned images often do not have square pixels. Even though the screen they are being displayed on may have true square pixels, this allows the system to work with as many different displays as possible. Each side of the right angle is scaled separately.
This interface has clear applications in more "scientific" fields, where distance and scale needs to be measured. In mapping applications, this allows the user to quickly find out the distance between two objects.
At this point, only the crow's-flight distance (hypotenuse) will be displayed. However, it is a trivival change to display the x, y, and direct distances, since the X and Y distances need to be calculated in order to find out the direct distance.
The calculations are not particularly hard -- to do the Bug Splat interface, it is a simple proportion multiplier, and for the click and drag, it's a proportion and pythagorian theorem. None of these should be particularly taxing on either the run-time system or the programmer.