If I were making it purely as a standalone commercial product, I would go for the 2x8 display. Nokia displays are great for hacking stuff together in 1-offs, but in commercial products, unless they have a separate bezel/mask they look rather naff and something a student would make. The Nokia display also requires a separate socket, whereas the 2x8 uses standard 0.1in header pins.
However, in this instance it isn't quite so simple. It is being aimed at the hacker and Open Hardware market where using a Nokia screen might actually be a selling point, especially if you want to get the design published in a magazine (great advertising).
Do I remember correctly that the local Maker group Dave visited has a laser cutter? I'm sure for a modest fee they would allow you to cut up a load of acrylic sheet. That would make custom marking available at no extra financial cost, just time.