Because you can see the color code at each step, it's easy to compare results very quickly, even by hand. Did I get letter 1 right? Ok, move on to letter two, try each key until the colors match the recording. Do this for each step. At most, you have to try about 64 key presses to crack each letter.
Also, because each step is only 1 character different, it's very unlikely that you will get collisions, even with a truncated md5 hash.