Was thinking the same thing. This would be interesting as a mesh network node that did not require an ISP connection, though that creates additional problems. Such as a lack of nodes.
Even with the ISP requirement, this is still a cool idea. Not for the form factor, that has been done. For the simplicity. It has the potential to make these capabilities MUCH more accessible to the average person.
I still remember trying to get wifi drivers hacked together for Linux just 10 years ago, now so many distributions have out-of-the-box wireless. That makes Linux much more appealing, much more usable for the non-techie. This is kind of like that advancement, but for specialized servers. (At least as I read it, and I hope I read it correctly.)
This is in some ways like TOR+VoIP+automated off-site backups+more for the common man. Even with the problems and limitations, that is a pretty awesome goal.