You know, I've often wondered why we don't join some of our existing technologies together and get on with things. I know it may not be as simple as it sounds, but we have this tech already:

http://www.sciencenews.org/view/feature/id/54170/title/Let_there_be_light
(Allows for manipulation of neurons with light)

http://pubs.acs.org/doi/abs/10.1021/nl051811%2B
http://nanotechweb.org/cws/article/tech/41146
(Nanoscale OLED displays)

http://www.egmrs.org/EJS/PDF/vo281/1.pdf
http://www.azonano.com/news.asp?newsID=6802
(Nanoscale light detectors)

http://www.bioone.org/doi/abs/10.2108/zsj.22.535?journalCode=jzoo
http://www.jove.com/index/details.stp?ID=2081
(And we can stain cells with dyes that fluoresce when the cells experience activity now)

We have peanut butter, jelly and bread. Why can't we get this all together to make a sandwich? Or is this currently in the works?
Or am I missing something subtle, that someone who actually knows about this research can enlighten us about?

Two words: Data Encryption...

I have been a soldier, and have had more than my share of fun in Iraq. A cell phone like this would really have been invaluable while I was there, providing a good way for squad leaders to relay encrypted messages to their troops, if nothing else. The other functions you describe are well within the realm of possibility with current technology. I hope they field some system like this soon, as it's sorely needed.

I'd *love* to see the ass of the more unethical employers and companies kicked like this as much as possible. These companies make life more difficult (sometimes impossible!) for companies that follow the rules. I've seen numerous local small buisnesses run out of buisness by dirty tactics. It always suprieses me when the largest offenders complain when the same sort of ruthless tactics are pulled on them.