Nope, I simulated it at various differences, and the rate that the respective (high or low) led cycles through its duty cycle is proportional to the difference between F1 and F2. Look at the sim above and you can clearly see the beat...
If the difference is above the eye's flicker fusion freq, then either the High or Low LED will be lit. Since only one LED is lit at a time, you would know which way to move which throttle. As the engine speeds get close, the LED will flash at the beat frequency; the beat getting slower as the two engines get closer to the same RPM.