I suppose it's technologically cool to stuff a 1.5GB 1" hard drive into a phone, but I would think that having a shock sensitive device in a drop-prone cell phone probably isn't the smartest idea. Maybe people take care of their phones better, but my wife is always dropping her phone on something, and I can't imagine something like this lasting very long around her. I'm sure plenty of people are dropping their cell phones all the time too. I would have thought some form of flash memory would be more suitable for a cell phone. And how long is the battery going to last on this thing?
It's bound to grab a lot of attention, but I can't imagine the idea lasting very long.