Great thinking and a good app. Have rated it 5 star.
Here are some suggestions:
1. Touch me not pic is too big and looks kind of average. I think only text or a 3d looking logo which occupies only quarter or 20% of the screen and if placed in center will look awesome.
2. Bottom half is totally empty and due to that the app looks somewhat incomplete. Place all the buttons vertically one after another so that the screen gets occupied.
3. Try some "soft on eyes" graphics for background and buttons.
4. There should be an option to customize the default alarm.
5. The app should lock the screen completely when picked.
6. If someone pick and the alarm goes off, putting the screen to sleep or pressing the home button turns off the alarm, at least on desire hd it does.
7. Place some advt after 10k downloads
8. Make it a paid app after 50k downloads (subject to good ratings and reviews) but keep it free for us