Make friends with some criminals. Worked for me.
I just got a brand new new 17" Macbook Pro for £100. I think that's about $160.
Top end one too with the 3.06GHz processor. I know this may not be entirely helpful, but I'm well happy about it and just had to share.

The BOWMAN system we use in the British Forces already does this. It's been around for several years. It's robust, tested and in use in several operational theaters.
It also ties in with the comms systems and everything else. I can't see them getting rid of a new several billion pound investment for the sake of a flimsy, plastic/glass device which could quite easily fail without warning.
Do I have an iPhone? Yes.
Would I trust it in a conflict environment? No.

@Soulsaber

Why doesn't Burger King support McDonalds or Pepsi support Coca-Cola?
Comment makes no sense? Neither did yours.

I wish they'd standardize them all to GSM. CDMA isn't much use to anyone once you've left the states. Roaming on a GSM is as simple as turning your phone on in another country.

I've got a beautiful tube amp for my guitar. Nothing can beat the sound that thing puts out. No amount of cheaper circuits and effects pedals could ever recreate that sound. Go educate yourself Matt.

Still though, the pricing for these things is just silly. Production cost is probably what? $200 max?

Open Source

Do what the hell you want with it. Make it run on your toaster if you want. Nobody is going to stop you or send out an update to make your Google Toaster stop working.

That's the worst contraption I've ever seen. How has this made it on to one of the best gadget blogs?
What's the point in having a camera like that if you're going to reduce the quality of the shot by using a 'lens' like that?

Haha

Simple but good idea I reckon. I'd like to see more (though done better) of this kind of thing. Rather than having to leave it open, just a nice hardware light. Would be nice on a phone too. If you don't want constant alerts going off when some twat twats you.

Great

I thought this was the back of an iPhone when I saw the picture. I'm looking forward to seeing this.

As others have said though, this doesn't look too 'creative'