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The only thing wrong with this is it's really a second computer. You can't use this thing as a standalone, you already have to have both a pc/mac AND an iPhone for it to have any real use.
Are you talking about the iPad, Jack? Why do you need an iPhone for it? I think I'd have three primary uses for it -- reading, web browsing and light productivity. Got a WiFi point here in the apartment, it's free at the Starbuck's up the street, and I'm generally an antisocial bastard, so no need for a camera or VoIP on it for me. I reckon it'd suit me just fine as it is, and the keyboard dock makes it pretty damn tempting, too.
you wouldn't want a little unix box in your pocket? what about being able to play Doom whenever you want, wherever you want? what about ubiquitous access to pornography?