LOVE it!  I have a thing for proud box joints for some reason.  I think it makes for a really sharp looking box.  I'm generally not a fan of wooden hinges, they usually seem too bulky but in this case, I think they work perfectly.  The way they compliment the handle really pulls the whole design together nicely.

The coloring and grain in that wood looks like IPE to me.  It does indeed like to chip out too.