Yes, it is a replacement for the 5 color gradient component with the following limitations:
1) Can not be seamless unless manually overridden,
2) Positions of the colors are limited, read the About section.
The concept of "ganging" together 5 color gradient components can create 8, 12, 16, 20 and so on color gradients. For the image stripe, you should be able to alter the Color controls to allow images and try that out. Using color stripes in this way will probably not be seamless.
If you use this snippet correctly, it is seamless despite the use of Transform components.
Blah, blah, blah... I used the 12 color gradient for the 12 Color Julia Set filter.
Math meets art meets psychedelia.