Yes, I love the concept. The choice of colours is perfect, I just used a similar colour on my speeder), and the actual stripe design is excellent also, it transforms the X-Wing into a hot rod...
I agree with Spry, the whole ship should be black or a greyish black. If you have an air brush I'd have an undercoat of black with a dark grey black sprayed lightly over the top. Minimal weathering is perfect for this ship.
With regards to it's purpose, I think this ship is part of an elite unit involved in the Yuuzhan Vong conflict. Name something like "Revenge" Squadron.... These X-Wings must have some form of secret weapon, either Cloaking shields or advanced Electronic Countermeasures.... I'm sure that Insignia Man (Viper Aviator) can give some guidance here...