Have not bought it, but did check it out. Here is a link to forum FAQ about the software directly from EQ site.
http://doyoueq.com/forum/viewtopic.php?f=20&t=2032
What EQ Stitch does is digitize what you create within EQ7. It cannot edit any embroidery you have purchased elsewhere and imported into EQ7. This is the one thing I wanted, so I will not be purchasing EQ Stitch. I want to have access to change the sizes of designs to fit where I need them to fit. My Babylock Ellegante does not allow me to transfer lettering from the machine to a program to resize for doing quilt labels. The PHC file for the lettering cannot be copied and converted. The designs can, but not the lettering. Had to purchase other fonts in order to make those labels. I was so excited to see this at first, but thankful I searched it out before diving in and grabbing it at the lower price.