If I remember right it was primarily marketed as a:

• web surfing device
• PMP (video, music playback)
• e-book reader

You might find serious applications for all of these features (e.g. reading textbooks), but they are mostly associated with entertainment.
Also, while it does sport all the necessary capabilities, the iphone doesn't exactly shine in any of the above applications, mainly due to the small screen.

A toy, as opposed to what? A serious business appliance?
AFAIK, it was supposed never supposed to be anything other than an entertainment device. And believe you me, there's a big market for entertainment devices...

Malabu Stacy? Is that a Nigerian Malibu Stacy clone?

Do they mean Japanese rape simulators?

Image results are filtered by default. So no, there probably wouldn't be any unpleasant surprises.

And the same thing couldn't have been achieved at home with an emulator?
Besides, these are high school students, not some university students taking classes in programming for embedded systems.

You can't visualize bone with MRI (it's invisible in MR images). What you're looking for is probably CT (3D X-ray), the problem with this though is that you cannot expose the general public to the radiation levels that come with a CT scan without their explicit consent.

Uh, last time I checked facebook wasn't a socialist state enterprise.

Looks like engadget got it backwards.

And here I thought there are no women on the internet...

Make a tar, zip, w/e archive of the stuff you want to backup, encrypt it and upload it to the cloud, eg. dropbox. Make sure sure that it's bigger than the free 2GB, so when you die and stop paying the storage fee, they'll delete your account. Was that so hard, or did I overlook something?

Of course you have to play it with your "wife", at least until they develop a hands-free computer interface.

Yeah, especially if their software is licensed on a per-core basis.

I agree, and admit that I put it unnecessarily sensationalist. I'm certainly not claiming that Apple will be producing chips for enterprise servers anytime soon. However, I do believe that we will never see an Apple product equipped with an Intel Atom. Further, I wouldn't say that the iPhone is without "business cred".
Anyway, I also vaguely remember that when Apple switched their computers from PowerPC to Intel, they said something about being pragmatic about processor choices, and that the day when they switch from Intel to another manufacturer's processors might come fairly soon. So, who knows, maybe another 5-10 years down the road we will see powerbooks based on Apple processors...

What makes it interesting is indeed only that it's made by apple. However, if you have a look at these market cap numbers, you may see why this could have some significant implications:
Apple
Intel