i think the instrument has a lot of potential, it's just that most people make the mistake of comparing it to a fretted guitar. it's like comparing a baritone and slide trombone - yes, they produce the same notes, but they are played differently and suited for different things. if you're worried about voicing chords on fretless guitar, then you're probably not playing appropriate music for the instrument. not to say you can't, but use the right tools for the job, you know?
if you're thinking about converting your guitar, be wary that it doesn't just involve pulling out the frets. at this stage, it sounds quite like a violin pizz, basically no sustain. rosewood will be too soft on it's own...the simplest option is to epoxy the fingerboard. metal and glass fingerboards have been done before, but it's quite an operation. it's also important to use the right strings, typically heavy-gauge flatwound or even nylon-wraps.
