Very interesting and a hot topic for many of us, I'm sure. I've known for a while about regional differences (such as people in Shanghai not pronouncing the nasal final "-ng") but this is the first time I have seen it written that the vowel sound is also different in "pin" and "ping".
In the Zhuyin sound representation system the "~ing" of Pinyin is the combination of a symbol for a medial vowel sound i and another symbol for the final consonant "eng". So ping is written ㄆㄧㄥ (p + i + eng)
Maybe this is where the author (Olle Linge) got the idea for the hypothetical illustration of a "pieng" spelling.
Also an interesting discussion of "mental categories," which could also be an argument for learning Zhuyin.