In my opinion this highlights one of the issues. It's a great technical approach that's been piloted by one council (in the UK).
The problem is, technicians look to solve the problems via technology. But the problem is bigger than that. It's also about the perception that something is being done, in that there is a way to report hazards, for the hazard to get a priority by those that use the app and in a way gives the power to the users to decide whats important.
Street Bump (as far as I can tell), is an independent app that you'll need to download and run for it to report back. Who's going to use it? Where if there is an app with an already strong (and building) community, by adding the functionality there - you do not need to download an additional app (and you raise the public awareness in one go).
Waze - also gives you the ability to comment on the hazard. This give a great indication to the real size of the problem. You could have two holes, the same size that have been reported the same number of times, but if there is a long list of comments on one - it indicates that there is a bigger problem - IE we could respond to the perception of the hazard, not just the stats.
It brings a level of engagement to the process.
The other issue, again at least for me, is that Street Bump is another fragmented solution. It's working the right way to achieve the same results., but I know of a number of pilots and different approached that have been used. But each time you're almost starting from stratch.
Waze has the community (something that Google believes is going to be big), and for me that's a huge benefit.
I have to admit - I'm not one of the technical guys that works on the Highways or TechMAC contract, I'm a online marketing and communications bloke, so I'm almost approaching this issue as a regular road user, but (for me) the only way something like this is going to succeed - is if people are backing it, and it hooks into something that they already use.
Once you've got that - the data will follow, and the councils (or those contracted to work for them) could all use the same system, that driven by the very people they want to help.