@Barry - It was because wpmupremium (at that time) violated the GPL license, sorry if that wasn't obvious from my comment. It's not an issue anymore because they've switched to being fully GPL compliant.

I should clarify that I think the local shortlink part is useless, external shortlinks is a harder problem.

You could generate extremely short URLs for WP by just using a base62 of the post ID (that's what wp.me does) and catching the 404 handler. If your domain is too long just alias it to yours and WP's canonical features will take care of the rest.

Stats are redundant because all of the clicks go to your site, which should already run a stats package like Google Analytics or WordPress.com Stats. Click tracking is only useful to know about traffic you're sending someplace else. (WP.com stats already tracks outgoing clicks.)

Shortening other people's links is useful. Long term, though, I hope shortened links go away for everything but severely constrained mediums, like SMS. (And who clicks on links from their SMS anyway?)